Social network and private provision of public goods

Bulat Sanditov () and Saurabh Arora
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Bulat Sanditov: IMT-BS - DEFI - Département Droit, Économie et Finances - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - EESC-GEM Grenoble Ecole de Management - UEVE - Université d'Évry-Val-d'Essonne - TEM - Télécom Ecole de Management
Saurabh Arora: SPRU - Science and Technology Policy Research - University of Sussex

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Abstract: We use a simple model of private voluntary contributions to a public good with interdependent individual utilities to study the effect of social network on provision of a public good. Agents in our model have choice between investment in global public good and private consumption, which due to interdependence of individual utilities can be seen as a local public good. Assuming interior solution we characterize Nash equilibrium in terms of the structure of the social network. An individual who is better connected to different parts of the network and whose own ego-network is sparse contribute to public good more than an individual with larger and densely connected ego-network.

Keywords: Social network; Social networks; Interrelated utilities; Public goods (search for similar items in EconPapers)
Date: 2015-07-02
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Citations: View citations in EconPapers (5)

Published in PET '15 : Annual Conference of the Association for Public Economic Theory, Jul 2015, Luxembourg, Luxembourg. 2015

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01266463

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