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Warm-Glow Giving in Networks with Multiple Public Goods

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  • Richefort, Lionel

Abstract

This paper explores a voluntary contribution game in the presence of warm-glow effects. There are many public goods and each public good benefits a different group of players. The structure of the game induces a bipartite network structure, where players are listed on one side and the public good groups they form are listed on the other side. The main result of the paper shows the existence and uniqueness of a Nash equilibrium. The unique Nash equilibrium is also shown to be locally asymptotically stable. Then the paper provides some comparative statics analysis regarding pure redistribution, taxation and subsidies. It appears that small redistributions of wealth may sometimes be neutral, but generally, the effects of redistributive policies depend on how public good groups are related in the contribution network structure.

Suggested Citation

  • Richefort, Lionel, 2017. "Warm-Glow Giving in Networks with Multiple Public Goods," ETA: Economic Theory and Applications 259480, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemth:259480
    DOI: 10.22004/ag.econ.259480
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    3. Nathan W. Chan & Stephen Knowles & Ronald Peeters & Leonard Wolk, 2024. "Cost-(in)effective public good provision: an experimental exploration," Theory and Decision, Springer, vol. 96(3), pages 397-442, May.
    4. Ngoc M. Nguyen & Lionel Richefort & Thomas Vallée, 2020. "Endogenous formation of multiple social groups," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 22(5), pages 1368-1390, September.
    5. Rezaei, Sarah & Rosenkranz, Stephanie & Weitzel, Utz & Westbrock, Bastian, 2024. "Social preferences on networks," Journal of Public Economics, Elsevier, vol. 234(C).
    6. Cao, GangCheng & Fang, Debin & Wang, Pengyu, 2021. "The impacts of social learning on a real-time pricing scheme in the electricity market," Applied Energy, Elsevier, vol. 291(C).

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    More about this item

    Keywords

    Research Methods/ Statistical Methods;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H40 - Public Economics - - Publicly Provided Goods - - - General

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