Influence networks and public goods
Working Paper Number
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.
Lopez-Pintado, Dunia, "Influence networks and public goods" (2016). Economics Department Working Paper Series. 211.