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Noncooperative household demand

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  • Lechene, Valérie
  • Preston, Ian

Abstract

We study noncooperative household models with two agents and several voluntarily contributed public goods, deriving the counterpart to the Slutsky matrix and demonstrating the nature of the deviation of its properties from those of a true Slutsky matrix in the unitary model. We provide results characterising both cases in which there are and are not jointly contributed public goods. Demand properties are contrasted with those for collective models and conclusions drawn regarding the possibility of empirically testing the collective model against noncooperative alternatives and the noncooperative model against a general alternative.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Theory.

Volume (Year): 146 (2011)
Issue (Month): 2 (March)
Pages: 504-527

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Handle: RePEc:eee:jetheo:v:146:y:2011:i:2:p:504-527

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Web page: http://www.elsevier.com/locate/inca/622869

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Keywords: Nash equilibrium Intra-household allocation Slutsky symmetry;

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References

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Citations

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Cited by:
  1. Boone, Jan & van der Wiel, Karen & Vermeulen, Frederic, 2009. "Kinky Choices, Dictators and Split Might: A Non-Cooperative Model for Household Consumption and Labor Supply," IZA Discussion Papers 4272, Institute for the Study of Labor (IZA).
  2. Sabrina Bruyneel & Laurens Cherchye & Bram De Rock, 2012. "Collective consumption models with restricted bargaining weights: an empirical assessment based on experimental data," Review of Economics of the Household, Springer, vol. 10(3), pages 395-421, September.
  3. Kemnitz, Alexander & Thum, Marcel, 2013. "Gender power, fertility, and family policy," Dresden Discussion Paper Series in Economics 01/13, Dresden University of Technology, Faculty of Business and Economics, Department of Economics.
  4. Cherchye, Laurens & Demuynck, Thomas & De Rock, Bram, 2013. "The empirical content of Cournot competition," Journal of Economic Theory, Elsevier, vol. 148(4), pages 1552-1581.
  5. Pierre-Andre Chiappori & Costas Meghir, 2014. "Intrahousehold Inequality," Cowles Foundation Discussion Papers 1948, Cowles Foundation for Research in Economics, Yale University.
  6. Laurens Cherchye & Thomas Demuynck & Bram De Rock & Frederic Vermeulen, 2014. "Household Consumption When the Marriage is Stable," Working Papers ECARES ECARES 2014-21, ULB -- Universite Libre de Bruxelles.
  7. Chiappori, Pierre-André & Donni, Olivier, 2009. "Non-unitary Models of Household Behavior: A Survey of the Literature," IZA Discussion Papers 4603, Institute for the Study of Labor (IZA).
  8. Claude d’Aspremont & Rodolphe Dos Santos Ferreira, 2014. "Household behavior and individual autonomy: an extended Lindahl mechanism," Economic Theory, Springer, vol. 55(3), pages 643-664, April.
  9. d’ASPREMONT, Claude & DOS SANTOS FERREIRA, Rodolphe, 2009. "Household behavior and individual autonomy," CORE Discussion Papers 2009022, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

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