Anwesha Banerjee

phd seminar

Anwesha Banerjee

AMSE
Contribution to a public good with altruistic preferences
Venue

IBD Salle 16

Îlot Bernard du Bois - Salle 16

AMU - AMSE
5-9 boulevard Maurice Bourdet
13001 Marseille

Date(s)
Tuesday, December 3 2019| 12:45pm to 1:30pm
Contact(s)

Anushka Chawla: anushka.chawla[at]univ-amu.fr
Laura Sénécal: laura.senecal[at]univ-amu.fr
Carolina Ulloa Suarez: carolina.ulloa-suarez[at]univ-amu.fr

Abstract

This paper presents a general model of private provision of a public good where individuals in a group have altruistic preferences towards other members of their group. I show that at the unique Nash equilibrium, there exists a threshold level of income above which members start contributing to the public good. Moreover, I ex- amine a second model where members can give private transfers of income to other members they care about, in addition to contributing to the public good. Under additive separability of the utility functions, I establish the uniqueness and existence of the Nash equilibrium of the model with transfers and find it to be closely connected to the equilibrium of the model without transfers. The threshold level of income of the model without transfers and the income of the poorest individual in the group together play a key role in determining the existence of private transfers of income.