Social Pressure in Networks Induces Public Good Provision
David Jimenez-Gomez
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David Jimenez-Gomez: Departamento de Fundamentos del Analisis Economico (FAE), University of Alicante, Campus de San Vicente, 03690 Alicante, Spain
Games, 2021, vol. 12, issue 1, 1-17
Abstract:
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.
Keywords: social pressure; public goods; contagion (search for similar items in EconPapers)
JEL-codes: C C7 C70 C71 C72 C73 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)
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