Clubs and the Market: Large Finite Economies

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

No 99-05, Discussion Papers from University of Copenhagen. Department of Economics

Abstract: We study large finite club economies in which agents can belong to several clubs, and care about the characteristics of the other club members. Club memberships must be integer consistent in aggregate. We show that states in the approximate core can approximately be decentralized by prices for private goods and for club memberships, that the approximate core is nonempty, and that approximate club equilibria exist. Our arguments use the convexification tools used for private goods economies, but we also develop a new tool to address the consistency requirement on memberships that are special to club economies. This tool allows us to overcome the integer consistency problems that are avoided in our (1999) paper by assuming a continuum of agents.

Keywords: clubs; e-cores; approximate equilibrium; decentralization (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-mic and nep-pbe
Date: 1999-01
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Published in: Journal of Econ Theory 101(1) 2001, 40-77

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http://www.econ.ku.dk/Research/Publications/pink/1999/9905.pdf (application/pdf)

Related works:
Working Paper: Clubs and the Market: Large Finite Economies (1997)
Working Paper: Clubs and the Market: Large Finite Economies (1997)
Journal Article: Clubs and the Market: Large Finite Economies (2001)
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