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Household Nash Equilibrium with Voluntarily Contributed Public Goods

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Author Info
Valerie Lechene
Ian Preston

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Abstract

We study noncooperative models with two agents and several voluntarily contributed public goods. We focus on interior equilibria in which neither agent is bound by non negativity constraints, establishing the conditions for existence and uniqueness of the equilibrium. While adding-up and homogneity hold, negativity and symmetry properties are generally violated. We derive the counterpart to the Slutsky matrix, and show that it can be decomposed into the sum of a symmetric and negative semidefinite matrix and another the rank of which never exceeds the number of public goods plus one. Under separability of the public goods the deviation from symmetry is at most rank two.

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Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 226.

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Date of creation: 2005
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Handle: RePEc:oxf:wpaper:226

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Keywords: Nash Equilibrum Intra-household Allocation Slutsky Symmetry

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Find related papers by JEL classification:
D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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Cited by:
(explanations, Please 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.)

  1. Martin Browing & Pierre-Andre Chiappori & Valerie Lechene, 2006. "Distributional effects in household models: separate spheres and income pooling," Economics Series Working Papers 293, University of Oxford, Department of Economics. [Downloadable!]
    Other versions:
  2. Valérie Lechene & Ian Preston, 2007. "Demand properties in household Nash equilibrium," IFS Working Papers W07/01, Institute for Fiscal Studies. [Downloadable!]
  3. Martin Browing & Pierre-Andre Chiappori & Valerie Lechene, 2006. "Quelques resultats sur l`effet des transferts cibles," Economics Series Working Papers 294, University of Oxford, Department of Economics. [Downloadable!]
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