This study investigates how people provide public goods in a network formation game. In this game, players first form a network through bilateral linking, with or without a link cost, and then contribute to a public good, which can benefit both themselves and their direct neighbors....

We propose a novel mechanism to mitigate the provisions of public bads in large groups. In the baseline setup, players choose their neighbors, and a greater number of neighbors brings benefits. They also decide whether to provide a public bad that yields benefits to themselves but imposes costs...