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Exclusion and the Theory of Clubs

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  • Robert W. Helsley
  • William C. Strange

Abstract

This paper examines the competitive provision of club goods with costly exclusion. The authors consider two exclusion regimes: fine and coarse. With fine exclusion, a provider can charge both a membership fee and a per use price. With coarse exclusion, a provider can charge a membership fee only. The authors show that competitive club good providers choose both the efficient exclusion regime, which depends on the costs of exclusion, and the associated efficient resource allocation. Thus, with costly exclusion, the competitive provision of club goods is constrained Pareto efficient.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 24 (1991)
Issue (Month): 4 (November)
Pages: 889-99

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Handle: RePEc:cje:issued:v:24:y:1991:i:4:p:889-99

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Citations

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Cited by:
  1. Kurtis J. Swope & Eckhard Janeba, 2001. "Taxes or Fees? The Political Economy of Providing Excludable Public Goods," CESifo Working Paper Series 542, CESifo Group Munich.
  2. Prüfer, J. & Walz, U., 2009. "How Does the Governance of Academic Faculties Affect Competition Among Them?," Discussion Paper 2009-49, Tilburg University, Center for Economic Research.
  3. DeWald, Joshua & Espey, Molly & Hammig, Michael D., 2004. "Implementation of Village Self-Help Projects in the Kyrgyz Republic," World Development, Elsevier, vol. 32(11), pages 1927-1938, November.
  4. Helsley, Robert W. & Strange, William C., 1998. "Private government," Journal of Public Economics, Elsevier, vol. 69(2), pages 281-304, June.
  5. Engel, Christoph, 0. "Competition in a pure world of Internet telephony," Telecommunications Policy, Elsevier, vol. 31(8-9), pages 530-540, September.
  6. Prüfer, J. & Walz, U., 2009. "Academic Faculty Governance and Recruitment Decisions," Discussion Paper 2009-021, Tilburg University, Tilburg Law and Economic Center.
  7. Prüfer, J. & Walz, U., 2007. "How Does Clubs' Organizational Design Affect Competition Among Clubs?," Discussion Paper 2007-011, Tilburg University, Tilburg Law and Economic Center.
  8. John P. Conley & Myrna Wooders, 1998. "Anonymous Lindahl Pricing in a Tiebout Economy with Crowding Types," Canadian Journal of Economics, Canadian Economics Association, vol. 31(4), pages 952-974, November.
  9. Todd Sandler, 2013. "Buchanan clubs," Constitutional Political Economy, Springer, vol. 24(4), pages 265-284, December.

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