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The Spread of Free-Riding Behavior in a Social Network

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  • Dunia L�pez-Pintado

    ()
    (Departamento de Econom�a, Universidad Pablo de Olavide, Sevilla, Spain.)

Abstract

We propose a model where agents located in a social network decide whether or not to exert effort to provide a local public good. We assume that they have strong incentives to free-ride on their neighbors’ effort decisions. We characterize the equilibria of the induced game. We also study a mean-field dynamics in which agents choose in each period the best response to the last period's decisions of their neighbors. We characterize the fraction of free-riders in the stable state of such a dynamics and show how it depends on properties of the degree distribution. Eastern Economic Journal (2008) 34, 464–479. doi:10.1057/eej.2008.30

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Bibliographic Info

Article provided by Palgrave Macmillan in its journal Eastern Economic Journal.

Volume (Year): 34 (2008)
Issue (Month): 4 ()
Pages: 464-479

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Handle: RePEc:pal:easeco:v:34:y:2008:i:4:p:464-479

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Cited by:
  1. López-Pintado, Dunia, 2008. "Diffusion in complex social networks," Games and Economic Behavior, Elsevier, vol. 62(2), pages 573-590, March.
  2. Paolo Pin & Luca Dall'Asta & Abolfazl Ramezanpour, 2009. "Optimal Equilibria of the Best Shot Game," Working Papers 2009.33, Fondazione Eni Enrico Mattei.

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