Lindahl Equilibrium is a method used to determine the efficient provision and fair cost allocation of public goods by adjusting individual cost shares until a consensus quantity is achieved.
An equation describing the set of Pareto-efficient allocations in an economy with public goods. In an economy with one public good, one private good, and H consumers, the Samuelson rule requires that the sum of the marginal rates of substitution between the public and private goods equals the marginal cost of the public good.
