A dynamic conjectural variations model in the private provision of public goods: a differential game approach
Abstract
The purpose of this paper is to provide reasonable microfoundation to justify the concept of a conjectural valuations equilibrium which is often used in the literature on the private provision of public goods by incorporating an explicit dynamic process of learning with the help of the differential game. By interpreting the steady state conjectures in such a dynamic provision game as the conjectural variations variations in the corresponding static game, we derive zero or nonzero conjectural variations as an outcome of a learning process. Furthermore, we find that there may be uncountable conjectural variations and the possibility of matching behavior (i.e., positive conjectures), when nonlinear feedback strategies are available and when the domain of a state variable is appropriately restricted.(This abstract was borrowed from another version of this item.)
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Bibliographic Info
Article provided by Elsevier in its journal Journal of Public Economics.
Volume (Year): 81 (2001)
Issue (Month): 1 (July)
Pages: 153-172
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/505578
Related research
Keywords:Other versions of this item:
- Jun-ichi Itaya & Koji Shimomura, 1999. "A Dynamic Conjectural Variations Model in the Private Provision of Public Goods: a Differential Game Approach," Discussion Paper Series 104, Research Institute for Economics & Business Administration, Kobe University.
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- D62 - Microeconomics - - Welfare Economics - - - Externalities
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Akihiko Yanase, 2006. "Dynamic Voluntary Provision of Public Goods and Optimal Steady-State Subsidies," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 8(1), pages 171-179, 01.
- Fujiwara, Kenji, 2008. "Duopoly can be more anti-competitive than monopoly," Economics Letters, Elsevier, vol. 101(3), pages 217-219, December.
- Kenji Fujiwara, 2010.
"Losses from competition in a dynamic game model of a renewable resource oligopoly,"
Discussion Paper Series
51, School of Economics, Kwansei Gakuin University, revised Apr 2010.
- Fujiwara, Kenji, 2011. "Losses from competition in a dynamic game model of a renewable resource oligopoly," Resource and Energy Economics, Elsevier, vol. 33(1), pages 1-11, January.
- Rubio, Santiago J. & Casino, Begona, 2002. "A note on cooperative versus non-cooperative strategies in international pollution control," Resource and Energy Economics, Elsevier, vol. 24(3), pages 251-261, June.
- Benchekroun, Hassan & Long, Ngo Van, 2008. "The build-up of cooperative behavior among non-cooperative selfish agents," Journal of Economic Behavior & Organization, Elsevier, vol. 67(1), pages 239-252, July.
- Sherrill Shaffer & Jason F. Shogren, 2008.
"Related Contests: A General Parameterization,"
CAMA Working Papers
2008-27, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
- Shaffer, Sherrill & Shogren, Jason F., 2009. "Repeated contests: A general parameterization," Economics Letters, Elsevier, vol. 105(2), pages 159-161, November.
- Eggert, Wolfgang & Itaya, Jun-ichi & Mino, Kazuo, 2011.
"A dynamic model of conflict and appropriation,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 78(1-2), pages 167-182, April.
- Eggert, Wolfgang & Itaya, Jun-ichi & Mino, Kazuo, 2011. "A dynamic model of conflict and appropriation," Journal of Economic Behavior & Organization, Elsevier, vol. 78(1), pages 167-182.
- Wolfgang Eggert & Jun-ichi Itaya & Kazuo Mino, 2010. "A DynamicModel of Conflict and Appropriation," KIER Working Papers 733, Kyoto University, Institute of Economic Research.
- Charles Figuières, 2009. "Markov interactions in a class of dynamic games," Theory and Decision, Springer, vol. 66(1), pages 39-68, January.
- Ngo Van Long & Koji Shimomura, 2006. "Voluntary Contributions to a Public Good: Non-neutrality Results / Contributions volontaires, biens publics," CIRANO Working Papers 2006s-20, CIRANO.
- Laura Marsiliani & Thomas I. Renstroem, 2010. "Privately provided public goods in a dynamic economy," Working Papers 2010_02, Durham University Business School.
- FIGUIERES, Charles & TIDBALL, Mabel & JEAN-MARIE, Alain, 2001.
"On the effects of conjectures in a symmetric strategic setting,"
CORE Discussion Papers
2001038, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Figuieres, Charles & Tidball, Mabel & Jean-Marie, Alain, 2004. "On the effects of conjectures in a symmetric strategic setting," Research in Economics, Elsevier, vol. 58(1), pages 75-102, March.
- Santiago J. Rubio, 2002.
"On The Coincidence Of The Feedback Nash And Stackelberg Equilibria In Economic Applications Of Differential Games,"
Working Papers. Serie AD
2002-11, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Santiago J. Rubio, 2003. "On the Coincidence of the Feedback Nash and Stackelberg Equilibria in Economic Applications of Differential Games," Economic Working Papers at Centro de Estudios Andaluces E2003/40, Centro de Estudios Andaluces.
- Hassan Benchekroun & Ngo Van Long, 2006. "The Build-up of Cooperative Behavior among Non-cooperative Agents," CIRANO Working Papers 2006s-17, CIRANO.
- John Heywood & Guangliang Ye, 2010. "Optimal privatization in a mixed duopoly with consistent conjectures," Journal of Economics, Springer, vol. 101(3), pages 231-246, November.
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