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Influence networks and public goods

Author

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  • Dunia Lopez-Pintado

    (Universidad Pablo de Olavide and CORE, Universite catholique de Louvain.)

Abstract

We consider a model of local public goods in a random network context. The influence network determines (exogenously) who observes whom every period and comprises a wide array of options depending on the degree distribution and the in/out-degree correlations. We show that there exists a unique equilibrium level of public good provision and compare it with the efficient level. We derive further insights for this problem by performing a comparative statics analysis.

Suggested Citation

  • Dunia Lopez-Pintado, 2016. "Influence networks and public goods," UMASS Amherst Economics Working Papers 2016-12, University of Massachusetts Amherst, Department of Economics.
    • Handle: RePEc:ums:papers:2016-12
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    References listed on IDEAS

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    More about this item

    Keywords

    influence networks; public goods; out-degree; in-degree; best-shot game;
    All these keywords.

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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