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Warm-glow giving in networks with multiple public goods

Author

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  • Lionel Richefort

    (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes)

Abstract

This paper explores a voluntary contribution game in the presence of warm-glow effects. There are many public goods and each public good benefits a different group of players. The structure of the game induces a bipartite network structure, where players are listed on one side and the public good groups they form are listed on the other side. The main result of the paper shows the existence and uniqueness of a Nash equilibrium. The unique Nash equilibrium is also shown to be asymptotically stable. Then the paper provides some comparative statics analysis regarding pure redistribution, taxation and subsidies. It appears that small redistributions of wealth may sometimes be neutral, but generally, the effects of redistributive policies depend on how public good groups are related in the contribution network structure.

Suggested Citation

  • Lionel Richefort, 2018. "Warm-glow giving in networks with multiple public goods," Post-Print hal-03732089, HAL.
  • Handle: RePEc:hal:journl:hal-03732089
    DOI: 10.1007/s00182-018-0616-z
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    References listed on IDEAS

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    3. Kundu, Rajendra P. & Pandey, Siddhigyan, 2021. "Multiple Public Goods In Networks," Working Papers 21/345, National Institute of Public Finance and Policy.
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    More about this item

    Keywords

    multiple public goods; warm-glow effects; bipartite contri- bution structure; Nash equilibrium; comparative statics; Théories des jeux;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H40 - Public Economics - - Publicly Provided Goods - - - General

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