I consider economic environments involving externalities and public goods where agents have full information but the regulator does not. For these environments I present a class of simple two-stage games whose subgame perfect equilibria are efficient allocations. In the case of two-party externalities, the equilibria involve compensation for the party upon whom the externality is inflicted. In the case of public goods, the equilibria are Lindahl allocations.Center for Research on Economic and Social Theory, Department of Economics, University of Michiganhttp://deepblue.lib.umich.edu/bitstream/2027.42/101019/1/ECON458.pd
