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This paper considers incentives to provide goods that are partially excludable along social links. Individuals face a capacity constraint in that, conditional upon providing, they may nominate only a subset of neighbours as co-beneficiaries. Our model has two typically incompatible ingredients: (i) a graphical game (individuals decide how much of the good to provide), and (ii) graph formation (individuals decide which subset of neighbours to nominate as co-beneficiaries). For any capacity constraints and any graph, we show the existence of specialised pure strategy Nash equilibria - those in which some individuals (the Drivers, D) contribute while the remaining individuals (the Passengers, P) free ride. The proof is constructive and corresponds to showing, for a given capacity, the existence of a new kind of spanning bipartite subgraph, a DP-subgraph, with partite sets D and P. We consider how the number of Drivers in equilibrium changes as the capacity constraints are relaxed and show a weak monotonicity result. Finally, we introduce dynamics and show that only specialised equilibria are stable against individuals unilaterally changing their provision level.
This study examines the mechanism design problem for public-good provision in a large economy with $n$ independent agents. We propose a class of dominant-strategy incentive compatible (DSIC) and ex post individual rational (EPIR) mechanisms which we
Public goods games in undirected networks are generally known to have pure Nash equilibria, which are easy to find. In contrast, we prove that, in directed networks, a broad range of public goods games have intractable equilibrium problems: The exist
Productive societies feature high levels of cooperation and strong connections between individuals. Public Goods Games (PGGs) are frequently used to study the development of social connections and cooperative behavior in model societies. In such game
Cancer cells obtain mutations which rely on the production of diffusible growth factors to confer a fitness benefit. These mutations can be considered cooperative, and studied as public goods games within the framework of evolutionary game theory. Th
In this Brief Report we study the evolutionary dynamics of the Public Goods Game in a population of mobile agents embedded in a 2-dimensional space. In this framework, the backbone of interactions between agents changes in time, allowing us to study