Let Xi be the amount of money a consumer has to spend. This Xi value is determined by the individual's initial wealth (Wi) and any contribution he makes to provision of a public good (Ri.In particular, Xi=Wi-Ri.Finally, let G be a binary variable that takes on a value of 1 if the public good is provided and 0 if it is not provided.Generally speaking, whether or not provision of a public good is a Pareto improvement will depend on initial wealth for which of the following utility functions (where ViG is a function that depends on whether or not the public good is provided)?
