Group formation: The interaction of increasing returns and preferences' diversity

Gabrielle Demange

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Abstract: The chapter is organized as follows. Section 2 focuses on competition in a simple economy under increasing returns to scale and heterogeneous consumers. The concept of sustainable oligopoly is discussed and analyzed. Section 3 studies in a more general and abstract set up competition among groups in the absence of spillovers. Whereas Section 3 develops some insights of Section 2, it can be read first. Finally Section 4 analyzes public decisions in a simple public good economy through the previous approach, and addresses the interaction between free mobility and free entry under negative externalities.

Keywords: group; formation (search for similar items in EconPapers)
Date: 2005
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00573563
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Citations: View citations in EconPapers (7)

Published in Gabrielle Demange ; Myrna Wooders. Group Formation in Economics: Networks, Clubs and Coalitions, Cambridge University Press, pp.171-208, 2005

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Working Paper: Group formation: The interaction of increasing returns and preferences' diversity (2005)
Working Paper: Group formation: The interaction of increasing returns and preferences' diversity (2004)
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