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, taxation and subsidies. It appears that small redistributions of wealth may sometimes be neutral, but generally, the effects of …
Persistent link: https://www.econbiz.de/10011660658
We consider the dynamic private provision of funds to projects that generate public benefits. Participants have complete information about the environment, but imperfect information about individual actions: each period they observe only the aggregate contribution. Each player may contribute any...
Persistent link: https://www.econbiz.de/10014152194
We model a bipartite network in which links connect agents with public goods. Agents play a voluntary contribution game in which they decide how much to contribute to each public good they are connected to. We show that the problem of finding a Nash equilibrium can be posed as a non-linear...
Persistent link: https://www.econbiz.de/10011283197
giving (perverse comparative statics) while at a high equilibrium (HE) the comparative statics are normal (subsidies promote … giving). The perverse comparative statics at LE preclude using subsidies to move the economy to HE. We show how temporary …
Persistent link: https://www.econbiz.de/10003941259
We construct a general equilibrium model of a two-country trading block where governments through tax policies attract mobile capital, and provide an imported public consumption good. At Nash equilibrium, when the public good is under-provided, (i) a country with a large GDP, has a large Nash...
Persistent link: https://www.econbiz.de/10011399347
We analyze group contests for public goods by applying the solution concept of an evolutionary stable strategy (ESS). We show that a global ESS cannot exist, because a mutant free-rider can always invade group behavior successfully. There does exist, however, a unique local ESS, which we...
Persistent link: https://www.econbiz.de/10011409788
In this paper, we propose a game in which each player decides with whom to establish a costly connection and how much local public good is provided when benefits are shared among neighbors. We show that, when agents are homogeneous, Nash equilibrium networks are nested split graphs....
Persistent link: https://www.econbiz.de/10012591497
This paper extends theory and experimentation in the context of two parties in a group who contribute to a public good with a provision point. This study analyzes the voluntary contributions game in which a public good is provided if and only if the sum of contributions meets or exceeds a...
Persistent link: https://www.econbiz.de/10011577030
Attempts to curb illegal activity through regulation gets complicated when agents can adapt to circumvent enforcement. Economic theory suggests that conducting audits on a predictable schedule, and (counter-intuitively) at high frequency, can undermine the effectiveness of audits. We conduct a...
Persistent link: https://www.econbiz.de/10011985963
In this paper we show how the Kolm triangle method, which is a standard tool for visualizing allocations in a public good economy, can also be used to provide a diagrammatical exposition of matching mechanisms and their effects on public good supply and welfare. In particular, we describe, on...
Persistent link: https://www.econbiz.de/10012016875