(LR is) as flexible and responsive as the market, but avoids free-rider problems.
- Flexible and responsive: any one can propose a new public good project, and the project can get enough fundings even when only a small community funds it.
- Subsidies create incentives for citizens to fund projects.
(Free-rider problem is) due to the expense or inefficiency involved in excluding individuals from access.
Cons of Existing Solutions
- 1p1v: oppress minorities.
- Capitalism: inefficiently exclude potential users.
- Charitable organization: difficult to closely align reliably with the common good.
- QV: it doesn’t solve the problem of flexibility, a.k.a., it requires a curated projects list.
- We can verifiably distinguish among and identify these citizens.
- Any citizen may at any time propose a new public good.
- Our interest here is in maximization of dollar-equivalent value rather than achieving an equitable distribution of value.
- Utility function V is concave (国内的叫法一般是反的，即我们平常说的凸函数), smooth, increasing.
- The deficit is not bounded, a.k.a, the funding solution can collect unbounded taxes.