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We study noncooperative models with two agents and several voluntarily contributed public goods. We focus on interior equilibria in which neither agent is bound by non negativity constraints, establishing the conditions for existence and uniqueness of the equilibrium. While adding-up and homogeneity hold, negativity and symmetry properties are generally violated. We derive the counterpart to the Slutsky matrix, and show that it can be decomposed into the sum of a symmetric and negative semidefinite matrix and another the rank of which never exceeds the number of public goods plus one. Under separability of the public goods the deviation from symmetry is at most rank two.
Authors
Research Fellow University College London
Ian is a Research Fellow of the IFS and a Professor of Economics at UCL. He joined UCL in 1991 and has been attached to the IFS since 1990.
Research Fellow University College London
Valerie, a Research Fellow of the IFS, is a Reader at the University College London, whose research is focused on modelling intra-household behaviour.
Working Paper details
- DOI
- 10.1920/wp.ifs.2005.0506
- Publisher
- IFS
Suggested citation
Lechene, V and Preston, I. (2005). Household Nash equilibrium with voluntarily contributed public goods. London: IFS. Available at: https://ifs.org.uk/publications/household-nash-equilibrium-voluntarily-contributed-public-goods (accessed: 20 May 2024).
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