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On the private provision of public goods on networks

Allouch, Nizar (2015) On the private provision of public goods on networks. Journal of Economic Theory, 157 . pp. 527-552. ISSN 0022-0531. (doi:10.1016/j.jet.2015.01.007) (KAR id:60194)

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http://dx.doi.org/10.1016/j.jet.2015.01.007

Abstract

This paper analyzes the private provision of public goods where consumers interact within a fixed network structure and may benefit only from their direct neighbours' provisions. We present a proof of the existence and uniqueness of a Nash equilibrium for general networks and best-reply functions. In addition, we investigate the neutrality result of Warr (1983) and Bergstrom, Blume, and Varian (1986) whereby consumers are able to undo the impact of income redistribution as well as public provision financed by lump-sum taxes. To this effect, we show that the neutrality result has a limited scope of application beyond a special network architecture in the neighborhood of the set of contributors.

Item Type: Article
DOI/Identification number: 10.1016/j.jet.2015.01.007
Uncontrolled keywords: public goods, Nash equilibrium, uniqueness, networks, neutrality, Bonacich centrality
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HJ Public Finance
Divisions: Divisions > Division of Human and Social Sciences > School of Economics
Depositing User: Nizar Allouch
Date Deposited: 07 Feb 2017 21:16 UTC
Last Modified: 16 Feb 2021 13:43 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/60194 (The current URI for this page, for reference purposes)
Allouch, Nizar: https://orcid.org/0000-0001-8046-4662
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