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Equilibrium Existence and Uniqueness in Public Good Models: An Elementary Proof via Contraction

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Author Info
 Cornes, Richard
Hartley, Roger
Sandler, Todd

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Abstract

This paper presents a proof for existence and uniqueness of a Nash equilibrium of a public good model that exploits a simple contraction mapping. The proof establishes both existence and uniqueness in a single exercise that provides intuition about sufficiency. The method of proof is applied not only to the basic pure public good model but also to the impure model. In the latter model, income normality does not play the same pivotal role for existence and uniqueness. Copyright 1999 by Blackwell Publishing Inc.

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Publisher Info
Article provided by Association for Public Economic Theory in its journal Journal of Public Economic Theory.

Volume (Year): 1 (1999)
Issue (Month): 4 ()
Pages: 499-509
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Handle: RePEc:bla:jpbect:v:1:y:1999:i:4:p:499-509

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=1097-3923

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  1. Ji-Tian Jeng, 2005. "Bayesian-Cournot Competition," Keele Economics Research Papers KERP 2005/01, Centre for Economic Research, Keele University. [Downloadable!]
  2. Thomas Gaube, 1999. "Group size and free riding when private and public goods are gross substitutes," Bonn Econ Discussion Papers bgse13_2000, University of Bonn, Germany, revised May 2000. [Downloadable!]
  3. R Cornes & R Hartley, 2005. "The Geometry of Aggregative Games," The School of Economics Discussion Paper Series 0514, Economics, The University of Manchester. [Downloadable!]
  4. Roy Chowdhury, Prabal, 2006. "Alliances Among Asymmetric Countries," MPRA Paper 1502, University Library of Munich, Germany. [Downloadable!]
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  5. Flavio Menezes & John Quiggin, 2007. "Games without Rules," Theory and Decision, Springer, vol. 63(4), pages 315-347, December. [Downloadable!] (restricted)
  6. Roger Hartley & Richard Cornes, 2000. "Joint Production Games And Share Functions," Keele Department of Economics Discussion Papers (1995-2001) 2000/07, Department of Economics, Keele University. [Downloadable!]
  7. Emanuela Randon, 2002. "L’analisi positiva dell’esternalità: rassegna della letteratura e nuovi spunti," Working Papers 58, University of Milano-Bicocca, Department of Economics, revised Jun 2002. [Downloadable!]
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