Evolutionary implementation in a public goods game

A-Tier
Journal: Journal of Economic Theory
Year: 2019
Volume: 181
Issue: C
Pages: 423-460

Authors (2)

Lahkar, Ratul (Ashoka University) Mukherjee, Saptarshi (not in RePEc)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We consider implementation of the efficient state in a large population public goods game. Due to positive externalities, the efficient state is different from the Nash equilibrium of the game. We apply a transfer scheme equal to the externality in the game. The externality adjusted public goods game is a potential game with a unique Nash equilibrium, which is the efficient state of the original game. It is also a continuous–strategy aggregative game. We introduce the best response dynamic for such aggregative potential games to show evolutionary implementation. Agents converge to the efficient state under this dynamic in the externality adjusted game. We extend this result to other prominent evolutionary dynamics. The pure externality price scheme, however, causes a budget deficit. A modification of this scheme solves this problem while evolutionarily implementing efficiency.

Technical Details

RePEc Handle
repec:eee:jetheo:v:181:y:2019:i:c:p:423-460
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25