Economics Department Working Paper Series

Influence networks and public goods

Working Paper Number

2016-12

Publication Date

2016

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.

DOI

https://doi.org/10.7275/9231537

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