Stable Public Goods Consumption Leads to Fairer Income Distribution
This article explores how two agents share a common good when only one can provide it. They find that public good consumption is more stable than private consumption. Income distribution doesn't affect consumption much, except in some cases. If the best allocation is sustainable, the equilibrium will reach it. Otherwise, agents' utilities will fluctuate. The provider's lifetime utility affects the equilibrium payoffs, shifting them higher or lower.