Networks of Many Public Goods with Non-Linear Best Replies
Data
16.06.2015
16.06.2015
Autori
Yann Rébillé (Université de Nantes); Lionel Richefort (Université de Nantes)
Codice JEL
C72, D85, H41
C72, D85, H41
Parole chiave:
Bipartite Graph, Public Good, Nash Equilibrium, Non-Linear, Complementarity Problem
Bipartite Graph, Public Good, Nash Equilibrium, Non-Linear, Complementarity Problem
Publisher
Climate Change and Sustainable Development
Climate Change and Sustainable Development
Editor
Carlo Carraro
Carlo Carraro
We model a bipartite network in which links connect agents with public goods. Agents play a voluntary contribution game in which they decide how much to contribute to each public good they are connected to. We show that the problem of finding a Nash equilibrium can be posed as a non-linear complementarity one. The existence of an equilibrium point is established for a wide class of individual preferences. We then find a simple sufficient condition, on network structure only, that guarantees the uniqueness of the equilibria, and provide an easy procedure for building networks that respects this condition.
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Suggested citation: Rébillé, Y., Richefort, L., ‘Networks of Many Public Goods with Non-Linear Best Replies’, Nota di Lavoro 57.2015, Milan, Italy: Fondazione Eni Enrico Mattei