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Public goods in networks

Publication ,  Journal Article
Bramoullé, Y; Kranton, R
Published in: Journal of Economic Theory
July 1, 2007

This paper considers incentives to provide goods that are non-excludable along social or geographic links. We find, first, that networks can lead to specialization in public good provision. In every social network there is an equilibrium where some individuals contribute and others free ride. In many networks, this extreme is the only outcome. Second, specialization can benefit society as a whole. This outcome arises when contributors are linked, collectively, to many agents. Finally, a new link increases access to public goods, but reduces individual incentives to contribute. Hence, overall welfare can be higher when there are holes in a network. © 2006 Elsevier Inc. All rights reserved.

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Published In

Journal of Economic Theory

DOI

EISSN

1095-7235

ISSN

0022-0531

Publication Date

July 1, 2007

Volume

135

Issue

1

Start / End Page

478 / 494

Related Subject Headings

  • Economic Theory
  • 3803 Economic theory
  • 3801 Applied economics
  • 1499 Other Economics
  • 1401 Economic Theory
 

Citation

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MLA
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Bramoullé, Y., & Kranton, R. (2007). Public goods in networks. Journal of Economic Theory, 135(1), 478–494. https://doi.org/10.1016/j.jet.2006.06.006
Bramoullé, Y., and R. Kranton. “Public goods in networks.” Journal of Economic Theory 135, no. 1 (July 1, 2007): 478–94. https://doi.org/10.1016/j.jet.2006.06.006.
Bramoullé Y, Kranton R. Public goods in networks. Journal of Economic Theory. 2007 Jul 1;135(1):478–94.
Bramoullé, Y., and R. Kranton. “Public goods in networks.” Journal of Economic Theory, vol. 135, no. 1, July 2007, pp. 478–94. Scopus, doi:10.1016/j.jet.2006.06.006.
Bramoullé Y, Kranton R. Public goods in networks. Journal of Economic Theory. 2007 Jul 1;135(1):478–494.
Journal cover image

Published In

Journal of Economic Theory

DOI

EISSN

1095-7235

ISSN

0022-0531

Publication Date

July 1, 2007

Volume

135

Issue

1

Start / End Page

478 / 494

Related Subject Headings

  • Economic Theory
  • 3803 Economic theory
  • 3801 Applied economics
  • 1499 Other Economics
  • 1401 Economic Theory