MULTIPLE PUBLIC GOODS IN NETWORKS
Publication dateAug, 2021
DetailsNIPFP Working Paper No. 345
AuthorsRajendra P. Kundu and Siddhigyan Pandey
In this paper we consider an n-player simultaneous move game on a fixed network, in which each player chooses her investment level in each of m goods that are non-rivalrous and non-excludable across links in the network. We analyze the existence, stability and welfare properties of PSNEs of the game. Our results demonstrate that while every game necessarily has a specialized equilibrium, the stability of equilibrium profiles and the existence of specialized equilibria in which specialization is dispersed depend crucially on the network structure. We also provide some interesting welfare implications relating to concentration of specialization.