Coalition Formation with Local Public Goods and Network Effect
Fan-chin Kung ()
Game Theory and Information from EconWPA
Many local public goods are provided by coalitions and some of them have network effects. Namely, people prefer to consume a public good in a coalition with more members. This paper adopts the Drèze and Greenberg (1980) type utility function where players have preferences over goods as well as coalition members. In a game with anonymous and separable network effect, the core is nonempty when coalition feasible sets are monotonic and players' preferences over public goods have connected support. All core allocations consist of connected coalitions and they are Tiebout equilibria as well. We also examine the no-exodus equilibrium for games whose feasible sets are not monotonic.
Keywords: Coalition formation; core; network effect; local public goods (search for similar items in EconPapers)
JEL-codes: C71 D71 H41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-net, nep-pbe and nep-ure
Note: Type of Document - pdf; pages: 17
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpga:0506007
Access Statistics for this paper
More papers in Game Theory and Information from EconWPA
Series data maintained by EconWPA ().