Clubs and the Market

Bryan Ellickson, Birgit Grodal, Suzanne Scotchmer () and William R. Zame
Additional contact information
Bryan Ellickson: University of California, Los Angeles
Birgit Grodal: Institute of Economics, University of Copenhagen

No 99-04, Discussion Papers from University of Copenhagen. Department of Economics

Abstract: This paper defines a general eqilibrium model with exchange and club formation. Agents trade multiple private goods widely in the market, can belong to several clubs, and care about the characteristics of the other members of their clubs. The space of agents is a continuum, but clubs are finite. It is shown that (i) competitive equilibria exist, and (ii) the core coincides with the set of equilibrium states. The central subtlety is in modeling club memberships and expressing the notion that membership choices are consistent across the population.

Keywords: clubs; continuum models; public goods; core; club equilibrium (search for similar items in EconPapers)
JEL-codes: D2 D5 H4 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-pbe
Date: 1999-08
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Published in: Econometrica 67(5) 1999, 1185-1219

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http://www.econ.ku.dk/Research/Publications/pink/1999/9904.pdf (application/pdf)

Related works:
Working Paper: Clubs and the Market (2003)
Journal Article: Clubs and the Market (1999)
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Persistent link: http://EconPapers.repec.org/RePEc:kud:kuiedp:9904

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