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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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Web page: http://center.uvt.nl

Related research

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

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  1. Lerner, Josh & Tirole, Jean, 2002. "Some Simple Economics of Open," Journal of Industrial Economics, Wiley Blackwell, vol. 50(2), pages 197-234, June.
  2. 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.
  3. 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.
  4. Samuel Bowles & Herbert Gintis, 2001. "Social Capital and Community Governance," Working Papers 01-01-003, Santa Fe Institute.
  5. 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.
  6. Gilles, Robert P. & Scotchmer, Suzanne, 1995. "Decentralization in Replicated Club Economies with Multiple Private Goods," Department of Economics, Working Paper Series qt22k559dk, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
  7. Falk, Armin & Fehr, Ernst & Fischbacher, Urs, 2001. "Appropriating the Commons - A Theoretical Explanation," CEPR Discussion Papers 2925, C.E.P.R. Discussion Papers.
  8. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory Of Fairness, Competition, And Cooperation," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 817-868, August.
  9. Conley, John P. & Wooders, Myrna H., 1997. "Equivalence of the Core and Competitive Equilibrium in a Tiebout Economy with Crowding Types," Journal of Urban Economics, Elsevier, vol. 41(3), pages 421-440, May.
  10. Ekelund, Robert B, Jr & Hebert, Robert F & Tollison, Robert D, 1989. "An Economic Model of the Medieval Church: Usury as a Form of Rent Seeking," Journal of Law, Economics and Organization, Oxford University Press, vol. 5(2), pages 307-31, Fall.
  11. 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.
  12. Jackson, Matthew O. & Wolinsky, Asher, 1996. "A Strategic Model of Social and Economic Networks," Journal of Economic Theory, Elsevier, vol. 71(1), pages 44-74, October.
  13. 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.
  14. Brighita Bercea & Robert B. Ekelund & Robert D. Tollison, 2005. "Cathedral Building as an Entry-Deterring Device," Kyklos, Wiley Blackwell, vol. 58(4), pages 453-465, November.
  15. 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.
  16. 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.
  17. Sudipta Sarangi & Robert P. Gilles, . "A Belief-based Approach to Network Formation," Departmental Working Papers 2008-01, Department of Economics, Louisiana State University.
  18. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
  19. Robert Gilles & Dimitrios Diamantaras & Pieter Ruys, 2003. "Optimal design of trade institutions," Review of Economic Design, Springer, vol. 8(3), pages 269-292, October.
  20. J. Marschak, 1955. "Elements for a Theory of Teams," Management Science, INFORMS, vol. 1(2), pages 127-137, January.
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