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Networks of Many Public Goods with Non-Linear Best Replies

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  • Rébillé, Yann
  • Richefort, Lionel

Abstract

We model a bipartite network in which links connect agents with public goods. Agents play a voluntary contribution game in which they decide how much to contribute to each public good they are connected to. We show that the problem of finding a Nash equilibrium can be posed as a non-linear complementarity one. The existence of an equilibrium point is established for a wide class of individual preferences. We then find a simple sufficient condition, on network structure only, that guarantees the uniqueness of the equilibria, and provide an easy procedure for building networks that respects this condition.

Suggested Citation

  • Rébillé, Yann & Richefort, Lionel, 2015. "Networks of Many Public Goods with Non-Linear Best Replies," Climate Change and Sustainable Development 206421, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemcl:206421
    DOI: 10.22004/ag.econ.206421
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    File URL: https://ageconsearch.umn.edu/record/206421/files/NDL2015-057.pdf
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    References listed on IDEAS

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    1. R. C. Cornes & A. G. Schweinberger, 1996. "Free Riding and the Inefficiency of the Private Production of Pure Public Goods," Canadian Journal of Economics, Canadian Economics Association, vol. 29(1), pages 70-91, February.
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    8. Rébillé, Yann & Richefort, Lionel, 2014. "Equilibrium existence and uniqueness in network games with additive preferences," European Journal of Operational Research, Elsevier, vol. 232(3), pages 601-606.
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    11. Richard Cornes & Jun‐Ichi Itaya, 2010. "On the Private Provision of Two or More Public Goods," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 12(2), pages 363-385, April.
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    Cited by:

    1. Lionel Richefort, 2018. "Warm-glow giving in networks with multiple public goods," International Journal of Game Theory, Springer;Game Theory Society, vol. 47(4), pages 1211-1238, November.

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    More about this item

    Keywords

    Institutional and Behavioral Economics;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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