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Social network and private provision of public goods

Author

Listed:
  • Bulat Sanditov

    (IMT-BS - DEFI - Département Droit, Economie et Finances - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - EESC-GEM Grenoble Ecole de Management - UEVE - Université d'Évry-Val-d'Essonne - TEM - Télécom Ecole de Management)

  • Saurabh Arora

    (SPRU - Science and Technology Policy Research - University of Sussex)

Abstract

We use a simple model of private voluntary contributions to a public good with interdependent individual utilities to study the effect of social network on provision of a public good. Agents in our model have choice between investment in global public good and private consumption, which due to interdependence of individual utilities can be seen as a local public good. Assuming interior solution we characterize Nash equilibrium in terms of the structure of the social network. An individual who is better connected to different parts of the network and whose own ego-network is sparse contribute to public good more than an individual with larger and densely connected ego-network.

Suggested Citation

  • Bulat Sanditov & Saurabh Arora, 2015. "Social network and private provision of public goods," Grenoble Ecole de Management (Post-Print) hal-01266463, HAL.
    • Handle: RePEc:hal:gemptp:hal-01266463
    Note: View the original document on HAL open archive server: https://hal.science/hal-01266463
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    Cited by:

    1. Ben Martin, 2016. "What is Happening to our Universities?," SPRU Working Paper Series 2016-03, SPRU - Science Policy Research Unit, University of Sussex Business School.
    2. Petersen, Alexander M. & Rotolo, Daniele & Leydesdorff, Loet, 2016. "A triple helix model of medical innovation: Supply, demand, and technological capabilities in terms of Medical Subject Headings," Research Policy, Elsevier, vol. 45(3), pages 666-681.
    3. Yuti Ariani Fatimah & Saurabh Arora, 2016. "Nonhumans in the Practice of Development: Material Agency and Friction in a Small-Scale Energy Program in Indonesia," SPRU Working Paper Series 2016-04, SPRU - Science Policy Research Unit, University of Sussex Business School.
    4. Matthew L. Wallace & Ismael Rafols, 2016. "Shaping the Agenda of a Grand Challenge: Institutional Mediation of Priorities in Avian Influenza Research," SPRU Working Paper Series 2016-02, SPRU - Science Policy Research Unit, University of Sussex Business School.
    5. Emily Cox, 2015. "Opening the Black Box of Energy Security: A Study of Conceptions of Electricity Security in the UK," SPRU Working Paper Series 2015-37, SPRU - Science Policy Research Unit, University of Sussex Business School.

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