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Club Theory and Household Formation

Hans Gersbach () and Hans Haller ()
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Hans Haller: Department of Economics, Virginia Polytechnic Institute and State University, Postal: Blacksburg, VA 24061-0316, USA

No 08-11, Sonderforschungsbereich 504 Publications from Sonderforschungsbereich 504, Universität Mannheim, Sonderforschungsbereich 504, University of Mannheim

Abstract: The relationship between our general equilibrium model with multi- member households and club models with multiple private goods is investigated. The main distinction in the definitions consists of the equilibrium concepts. As a rule, competitive equilibria among households where no group of consumers can benefit from forming a new household and valuation equilibria prove equivalent in the absence of consumption externalities, but not in their presence.

Pages: 25 pages
Date: 2008-07-17
Note: Financial support from the Deutsche Forschungsgemeinschaft, SFB 504, at the University of Mannheim, is gratefully acknowledged.
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Related works:
Journal Article: Club theory and household formation (2010) Downloads
Working Paper: Club Theory and Household Formation (2009) Downloads
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