2018 Discussion papers
School of Economics Discussion Paper 18/06
Constrained public goods in networks
Nizar Allouch, University of Kent
Maia King, University of Oxford
This paper analyses the private provision of public goods where agents interact within a fixed network structure and may benefit only from their direct neighbours’ provisions. We survey the literature and then generalise the public goods in networks model of Bramoullé and Kranton (2007) to allow for constrained provision. In so doing, we show that, using the concept of k-insulated set, any network supports a Nash equilibrium with no intermediate contributors.
JEL Classification: D85; H41
Keywords: public goods; Nash equilibrium; k-insulated set; networks
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