Abstract

We explore private public good provision in a directed network to which agent interact with incoming and outgoing neighbours. We then highlight specific core-periphery network properties in relation to interdependence and Nash action by agents. For welfare policies, we find neutrality of intervention policies that create or reduce market frictions and improvement based on policies that provide administrative subsidies thus creating an avenue for cost effective resource transfer policy. Lastly, we find significant relationship between a agents centrality measured by weaker negative externality and welfare improvement due to such subsidy.

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