When inefficiency begets efficiency

Hans Gersbach and Hans Haller ()

Economic Theory, 2005, vol. 25, issue 1, 105-121

Abstract: Collective consumption decisions taken by the members of a household may prove inefficient. The impact on market performance depends on whether household inefficiencies are caused by inefficient net trades with the market or by inefficient distribution of resources within households. Inefficient internal distribution always results in inefficient equilibrium allocations. This leads us to consider competitive forces as disciplinary device for households. Competition of households for both resources and members can eliminate or reduce inefficient internal distribution. Copyright Springer-Verlag Berlin/Heidelberg 2005

Keywords: General equilibrium; Household decisions; Household formation. (search for similar items in EconPapers)
Date: 2005
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://hdl.handle.net/10.1007/s00199-004-0469-5 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: When Inefficiency Begets Efficiency (2004)
Working Paper: When Inefficiency Begets Efficiency (2003)
Working Paper: When Inefficiency Begets Efficiency (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:joecth:v:25:y:2005:i:1:p:105-121

Ordering information: This journal article can be ordered from
http://www.springer. ... eory/journal/199/PS2

DOI: 10.1007/s00199-004-0469-5

Access Statistics for this article

Economic Theory is currently edited by Nichoals Yanneils

More articles in Economic Theory from Springer, Society for the Advancement of Economic Theory (SAET) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().