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Persistent link: https://www.econbiz.de/10012094686
This paper presents a proof for existence and uniqueness of a Nash equilibrium of a public good model that exploits a simple contraction mapping. The proof establishes both existence and uniqueness in a single exercise that provides intuition about sufficiency. The method of proof is applied not...
Persistent link: https://www.econbiz.de/10005305320
In a public good economy the distribution of initial income is an important determinant of how many individuals contribute to the public good in Cournot-Nash equilibrium. In this paper, first a simple formula is derived that provides a measure for the size of the set of income distributions...
Persistent link: https://www.econbiz.de/10005305372
We exploit the aggregative structure of the public good model to provide a simple analysis of the voluntary contribution game. In contrast to the best response function approach, ours avoids the proliferation of dimensions as the number of players is increased, and can readily analyze games...
Persistent link: https://www.econbiz.de/10005215837
We extend the simple model of voluntary public good provision to allow for two or more public goods, and explore the new possibilities that arise in this setting. We show that, when there are many public goods, voluntary contribution equilibrium typically generates, not only too low a level of...
Persistent link: https://www.econbiz.de/10008670700