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- Intuitively, the planner internalizes the effect that each agent has on others’ social capital when she entertains more intense social interactions. As a result, the planner asks agents to increase their frequency of social interactions above the equilibrium level. This welfare conclusion confirms Brueckner’s (2007) and extends his analysis to the case where agents are distributed across the space. Can the efficient allocation of social interactions can be decentralized by setting subsidies ï‚´ (ï¸ï€» ï¹) and  (ï¸ï€» ï¹) for interactions and travel cost? In this case, the utility becomes ï•(ï¸) = ï“(ï¸) − ïƒ(ï¸) =
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