Private Provision of Public Goods in the Local Interaction Model

Economics

Further details

This paper analyses the evolutionary version of the Public Good game, when agents have the imitation and the best reply decision rules. Eshel, Samuelson, and Shaked (AER, 1998) show that an irrational cooperative outcome will survive in this game, if all N agents interact with two or four neighbors and use imitation rule to select a strategy. I show that this result is robust to the introduction of the best reply rule. Moreover, I provide a condition under which the cooperative outcomes will arise for any number of neighbors