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Multiple Public Goods In Networks

Author

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  • Kundu, Rajendra P.

    (Centre for Economic Studies and Planning, School of Social Sciences, Jawaharlal Nehru University)

  • Pandey, Siddhigyan

    (Jindal School of Liberal Arts and Humanities, O.P. Jindal Global University)

Abstract

In this paper we consider an n-player simultaneous move game on a fixed network, in which each player chooses her investment level in each of m goods that are non-rivalrous and non-excludable across links in the network. We analyze the existence, stability and welfare properties of PSNEs of the game. Our results demonstrate that while every game necessarily has a specialized equilibrium, the stability of equilibrium profiles and the existence of specialized equilibria in which specialization is dispersed depend crucially on the network structure. We also provide some interesting welfare implications relating to concentration of specialization.

Suggested Citation

  • Kundu, Rajendra P. & Pandey, Siddhigyan, 2021. "Multiple Public Goods In Networks," Working Papers 21/345, National Institute of Public Finance and Policy.
    • Handle: RePEc:npf:wpaper:21/345
    Note: Working Paper 345, 2021
    as

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    References listed on IDEAS

    as
    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.
    2. Maier-Rigaud, Frank P. & Martinsson, Peter & Staffiero, Gianandrea, 2010. "Ostracism and the provision of a public good: experimental evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 73(3), pages 387-395, March.
    3. Mutuswami, Suresh & Winter, Eyal, 2004. "Efficient mechanisms for multiple public goods," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 629-644, March.
    4. Ostrom, Elinor & Walker, James & Gardner, Roy, 1992. "Covenants with and without a Sword: Self-Governance Is Possible," American Political Science Review, Cambridge University Press, vol. 86(2), pages 404-417, June.
    5. Simon Gachter & Ernst Fehr, 2000. "Cooperation and Punishment in Public Goods Experiments," American Economic Review, American Economic Association, vol. 90(4), pages 980-994, September.
    6. Suman Ghosh & Alexander Karaivanov & Mandar Oak, 2007. "A Case for Bundling Public Goods Contributions," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 9(3), pages 425-449, June.
    7. Bramoulle, Yann & Kranton, Rachel, 2007. "Public goods in networks," Journal of Economic Theory, Elsevier, vol. 135(1), pages 478-494, July.
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    Cited by:

    1. Pandey, Siddhi Gyan, 2021. "Evolution of cooperative networks," Working Papers 21/346, National Institute of Public Finance and Policy.
    2. Agarwal, Manmohan & Betai, Neha, 2021. "Intra-Industry Trade in Manufactured Goods: A Case of India," Working Papers 21/348, National Institute of Public Finance and Policy.
    3. Mehta, Diva & Mukherjee, Sacchidananda, 2021. "Emerging Issues in GST Law and Procedures: An Assessment," Working Papers 21/347, National Institute of Public Finance and Policy.

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