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Externality pricing in club economies

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  • SCOTCHMER, SUZANNE

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.

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Bibliographic Info

Article provided by Elsevier in its journal Ricerche Economiche.

Volume (Year): 50 (1996)
Issue (Month): 4 (December)
Pages: 347-366

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Handle: RePEc:eee:riceco:v:50:y:1996:i:4:p:347-366

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Web page: http://www.elsevier.com/locate/inca/622941

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Cited by:
  1. Scotchmer, Suzanne, 1997. "On price-taking equilibria in club economies with nonanonymous crowding," Journal of Public Economics, Elsevier, vol. 65(1), pages 75-88, July.
  2. Bryan Ellickson and Birgit Grodal, Suzanne Scotchmer, and William R.Zame., 1997. "Clubs and the Market: Large Finite Economies," Economics Working Papers 97-255, University of California at Berkeley.
  3. Bryan Ellickson & Birgit Grodal & Suzanne Scotchmer & William R. Zame, 1998. "Clubs and the Market: Continuum Economies," Microeconomics 9802002, EconWPA.

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