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Stable Economic Cooperation: A Relational Approach

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  • Gilles, R.P.
  • Lazarova, E.A.
  • Ruys, P.H.M.

    (Tilburg University, Center for Economic Research)

Abstract

We consider a relational economy in which economic agents participate in three types of relational economic activities: autarkic activities; binary matching activities; and plural cooperative activities. We introduce a stability notion and characterize stable interaction structures, both in the absence of externalities from cooperation as well as in the presence of size-based externalities. It is shown that institutional elements such as the emergence of socio-economic roles and organizations based on hierarchical leadership structures support and promote stable economic development.

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Bibliographic Info

Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2008-25.

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Date of creation: 2008
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Handle: RePEc:dgr:kubcen:200825

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Related research

Keywords: Cooperatives; Networks; Clubs; Relational economies; Stable matchings;

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  1. Robert P. Gilles and Suzanne Scotchmer., 1995. "Decentralization in Replicated Club Economies with Multiple Private Goods," Economics Working Papers 95-243, University of California at Berkeley.
  2. Ernst Fehr & Klaus M. Schmidt, . "A Theory of Fairness, Competition and Cooperation," IEW - Working Papers 004, Institute for Empirical Research in Economics - University of Zurich.
  3. Robert P. Gilles & Emiliya A. Lazarova & Pieter H. M. Ruys, 2007. "Stability, Specialization And Social Recognition," Division of Labor & Transaction Costs (DLTC), World Scientific Publishing Co. Pte. Ltd., vol. 2(02), pages 83-109.
  4. Matthew O. Jackson & Asher Wolinsky, 1994. "A Strategic Model of Social and Economic Networks," Discussion Papers 1098, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  5. Armin Falk & Ernst Fehr & Urs Fischbacher, . "Appropriating the Commons - A Theoretical Explanation," IEW - Working Papers 055, Institute for Empirical Research in Economics - University of Zurich.
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  7. Robert P. Gilles & Dimitrios Diamantaras, 2003. "To Trade Or Not To Trade: Economies With A Variable Number Of Tradeables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(3), pages 1173-1204, 08.
  8. Sudipta Sarangi & Robert P. Gilles, . "A Belief-based Approach to Network Formation," Departmental Working Papers 2008-01, Department of Economics, Louisiana State University.
  9. John P. Conley & Hideo Konishi, 2000. "Migration-Proof Tiebout Equilibrium: Existence and Asymptotic Efficiency," Boston College Working Papers in Economics 452, Boston College Department of Economics, revised 01 Dec 2000.
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  12. Habtom, GebreMichael Kibreab & Ruys, Pieter, 2007. "Traditional risk-sharing arrangements and informal social insurance in Eritrea," Health Policy, Elsevier, vol. 80(1), pages 218-235, January.
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  15. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
  16. Robert Gilles & Dimitrios Diamantaras & Pieter Ruys, 2003. "Optimal design of trade institutions," Review of Economic Design, Springer, vol. 8(3), pages 269-292, October.
  17. Scotchmer, Suzanne, 2002. "Local public goods and clubs," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 4, chapter 29, pages 1997-2042 Elsevier.
  18. Doris Wiesmann & Johannes J├╝tting, 2000. "The emerging movement of community based health insurance in sub-Saharan Africa: Experiences and lessons learned," Africa Spectrum, Institute of African Affairs, GIGA German Institute of Global and Area Studies, Hamburg, vol. 35(2), pages 193-210.
  19. Justin Pappas Johnson, 2002. "Open Source Software: Private Provision of a Public Good," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 11(4), pages 637-662, December.
  20. Lerner, Josh & Tirole, Jean, 2002. "Some Simple Economics of Open," Journal of Industrial Economics, Wiley Blackwell, vol. 50(2), pages 197-234, June.
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