Lucia Ghezzi
Networked Public Good Games : Equilibria and Best Response Dynamics.
Rel. Giacomo Como, Fabio Fagnani. Politecnico di Torino, Corso di laurea magistrale in Ingegneria Matematica, 2025
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Abstract
This thesis investigates game theoretic models for public good provision. We consider network games defined on weighted and directed graphs, where agents are heterogeneous with respect to income level, preference structure, and effort cost. Public goods are here studied in their local form: the benefits of one agent’s contributions are shared only among her direct out-neighbors. Each player allocates her income between private consumption and contributions to the public good. While private consumption provides purely individual benefits, public contributions yield payoffs that also depend on the allocations of neighboring agents, scaled by the intensity of their network connections. Initially, we formalize the model, derive best response functions, and establish the existence of Nash equilibria.
In addition, we provide the characterization of equilibrium profiles, with a focus on internal equilibria, where all agents contribute positively, and specialized equilibria, where only a subset contributes while others free-ride
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