Externality Pricing in Club Economies

Suzanne Scotchmer

No 96-246, Economics Working Papers from University of California at Berkeley

Abstract: The paper shows that competitive forces in club economies lead to admissions prices that can be decomposed as linear prices on externality-producing attributes, where each member pays the same amount per unit attribute contributed. The externalities prices are sufficient to cover the costs of services provided within the club.

Date: 1996-03-01
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Related works:
Journal Article: Externality pricing in club economies (1996)
Working Paper: Externality Pricing in Club Economics (1996)
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