Stable Economic Cooperation: A Relational Approach
AbstractWe 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 InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2008-25.
Date of creation: 2008
Date of revision:
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Web page: http://center.uvt.nl
Cooperatives; Networks; Clubs; Relational economies; Stable matchings;
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
- D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-03-15 (All new papers)
- NEP-GTH-2008-03-15 (Game Theory)
- NEP-NET-2008-03-15 (Network Economics)
- NEP-SOC-2008-03-15 (Social Norms & Social Capital)
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