| Sumario: | A study derived systems of demand equations for distinguishing between Nash-Cournot and Lindahl allocation behavior in a group that either shares a pure public good or an activity that provides a private and a pure public joint product. Each method has its own implications for the resulting optimality implied by the equilibrium associated with the allocation procedure. Systems of simultaneous equations were estimated based on Nash-Cournot and Lindahl behavior for a sample of 10 North Atlantic Treaty Organization allies for the 1956-87 period. Nonnested hypothesis tests supported the Nash-Cournot specification for 5 of the 10 sample allies, but no evidence of Lindahl behavior was found. In addition, the Nash-Cournot joint-product specification outperformed the Nash-Cournot pure public model for all sample NATO members.
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