New cost-sharing mechanism maximizes welfare for public and private goods.
Excludable public goods and private goods with network effects face similar challenges in coordinating how they are shared. A new study looked at a cost-sharing method called ECSMP, which works well for excludable public goods. The researchers found that ECSMP is also effective for both types of goods in a setting with generalized non-rivalry. This means that ECSMP could be a useful way to manage sharing and participation in a wider range of situations than previously thought.