Munich Personal RePEc Archive

A Note on Contribution Games with Loss Functions

Russo, Giuseppe and Senatore, Luigi (2011): A Note on Contribution Games with Loss Functions.

[img]
Preview
PDF
MPRA_paper_33423.pdf

Download (207kB) | Preview

Abstract

Decisions on joint funding of continuous public goods between two agents often involve heterogeneous targets. We introduce loss functions in a contribution game in order to study the effect of this conflict. Unlike Varian (1994), joint contribution occurs only if the players’ targets are sufficiently close and the sequential game reduces free riding problems, while total contribution is higher in the simultaneous game.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.