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We put forward a model of private goods with externalities. Agents derive benefit from communicating with each other. In order to communicate they need to have a language in common. Learning languages is costly. In this setting no individually rational and feasible Groves mechanism exists. We characterize the best-in-class feasible Groves mechanism and the best-in-class individually rational Groves mechanism.
Athanasiou, Efthymios; Dey, Santanu; and Valletta, Giacomo, "On Sharing the Benefits of Communication" (August 02, 2012). Fondazione Eni Enrico Mattei Working Papers. Paper 692.