The Simple Analytics of Pure Public Good Provision

Economica ◽  
1985 ◽  
Vol 52 (205) ◽  
pp. 103 ◽  
Author(s):  
Richard Cornes ◽  
Todd Sandler
Keyword(s):  
Public Good ◽  
Public Good Provision ◽  
Pure Public Good ◽  
Good Provision

Pareto-Improving Redistribution and Pure Public Goods

2000 ◽  
Vol 1 (2) ◽  
pp. 169-186 ◽  
Author(s):  
Richard Cornes ◽  
Todd Sandler
Keyword(s):  
Public Good ◽  
Well Being ◽  
Policy Intervention ◽  
Public Good Provision ◽  
Large Aggregate ◽  
The Public ◽  
Pure Public Good ◽  
Comparative Static Analysis ◽  
Good Provision ◽  
Pareto Improving

Abstract In the pure public good model, the Nash equilibrium associated with one initial income distribution may Pareto dominate the equilibrium associated with another distribution of the same aggregate income. We explore this possibility and examine its implications for Pareto-improving policy intervention by undertaking a comparative static analysis of Pareto-improving tax-financed increases in pure public good provision. Under some circumstances, a government can engineer policies that raise public good provision while increasing the well-being of contributors and noncontributors. Crucial factors promoting this outcome involve a large number of noncontributors, a high marginal valuation for the public good by non-contributors and a large aggregate response of contributors to changes in their income.

Group size and the (in)efficiency of pure public good provision

2016 ◽  
Vol 85 ◽  
pp. 272-287 ◽  
Author(s):  
Johannes Diederich ◽  
Timo Goeschl ◽  
Israel Waichman
Keyword(s):  
Public Good ◽  
Group Size ◽  
Public Good Provision ◽  
Pure Public Good ◽  
Good Provision

scholarly journals Social Pressure in Networks Induces Public Good Provision

Games ◽  
2021 ◽  
Vol 12 (1) ◽  
pp. 4
Author(s):  
David Jimenez-Gomez
Keyword(s):  
Public Good ◽  
Small Group ◽  
Dynamic Model ◽  
Network Topology ◽  
Social Pressure ◽  
Public Good Provision ◽  
Public Good Game ◽  
The Public ◽  
Best Response ◽  
Good Provision

I develop a dynamic model with forward looking agents, and show that social pressure is effective in generating provision in a public good game: after a small group of agents start contributing to the public good, other agents decide to contribute as well due to a fear of being punished, and this generates contagion in the network. In contrast to earlier models in the literature, contagion happens fast, as part of the best response of fully rational individuals. The network topology has implications for whether contagion starts and the extent to which it spreads. I find conditions under which an agent decides to be the first to contribute in order to generate contagion in the network, as well as conditions for contribution due to a self-fulfilling fear of social pressure.

scholarly journals The Evolution of Networks and Local Public Good Provision: A Potential Approach

Games ◽  
2021 ◽  
Vol 12 (3) ◽  
pp. 55
Author(s):  
Markus Kinateder ◽  
Luca Paolo Merlino
Keyword(s):  
Public Good ◽  
Nash Equilibria ◽  
Potential Game ◽  
Public Good Provision ◽  
Local Public Good ◽  
Steady State Distribution ◽  
State Distribution ◽  
Long Run ◽  
Split Graphs ◽  
Good Provision

In this paper, we propose a game in which each player decides with whom to establish a costly connection and how much local public good is provided when benefits are shared among neighbors. We show that, when agents are homogeneous, Nash equilibrium networks are nested split graphs. Additionally, we show that the game is a potential game, even when we introduce heterogeneity along several dimensions. Using this result, we introduce stochastic best reply dynamics and show that this admits a unique and stationary steady state distribution expressed in terms of the potential function of the game. Hence, even if the set of Nash equilibria is potentially very large, the long run predictions are sharp.

Sign in / Sign up

Export Citation Format

Share Document