LINDAHL EQUILIBRIUM
A circumstance which suggests that individuals pay the provision of a public good according to their marginal benefits in order to assess the potent level of provision for these public goods. All individuals consume the same number of public goods but may encounter various prices because some individuals may value a certain good more than others. The Lindahl equilibrium price pertains to the payment made by a person for his or share of that specific good.
The Lindahl equilibrium was conceptualized by Swedish Economist Erik Lindahl.
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