If a public good is financed through Lindahl prices, those whose total willingness to pay for the public good is high will end up paying a higher Lindahl price than those whose total willingness to pay for the public good is low.

Question

Quizplus · Accepted Answer

Lindahl pricing aims to charge individuals based on their marginal willingness to pay for each unit of a public good, not their total willingness to pay, leading to an equitable distribution of the cost based on individual valuations.

If a Public Good Is Financed Through Lindahl Prices, Those