Existence and Nash implementation of effcient sharing rules for a commonly owned technology

Abstract

Suppose that a group of individuals owns collectively a technology which produces a consumption good by means of a (possibly heterogeneous)input. A sharing rule associates input contributions with a vector of consumptions that are technologically feasible. We show that the set of allocations obtained by any continuous sharing rule contains Pareto efficient allocations. We also present a mechanism that implements in Nash equilibrium the Pareto efficient allocations contained in an arbitrary sharing rule.