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Group formation: The interaction of increasing returns and preferences' diversity

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  • Gabrielle Demange

    (DELTA - Département et Laboratoire d'Economie Théorique et Appliquée - Ecole Normale Supérieure de Paris - ENS Paris - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - CNRS : UMR8545)

Abstract

The chapter is organized as follows. Section 2 focuses on competition in a simple economy under increasing returns to scale and heterogeneous consumers. The concept of sustainable oligopoly is discussed and analyzed. Section 3 studies in a more general and abstract set up competition among groups in the absence of spillovers. Whereas Section 3 develops some insights of Section 2, it can be read first. Finally Section 4 analyzes public decisions in a simple public good economy through the previous approach, and addresses the interaction between free mobility and free entry under negative externalities.

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Bibliographic Info

Paper provided by HAL in its series Post-Print with number halshs-00573563.

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Date of creation: 2005
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Publication status: Published, Group Formation in Economics: Networks, Clubs and Coalitions, Cambridge University Press (Ed.), 2005, 171-208
Handle: RePEc:hal:journl:halshs-00573563

Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00573563/en/
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Keywords: group formation;

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  1. Guesnerie, Roger & Oddou, Claude, 1981. "Second best taxation as a game," Journal of Economic Theory, Elsevier, vol. 25(1), pages 67-91, August.
  2. Guesnerie, Roger & Oddou, Claude, 1988. " Increasing Returns to Size and Their Limits," Scandinavian Journal of Economics, Wiley Blackwell, vol. 90(3), pages 259-73.
  3. Yi, Sang-Seung, 1997. "Stable Coalition Structures with Externalities," Games and Economic Behavior, Elsevier, vol. 20(2), pages 201-237, August.
  4. Kaneko, Mamoru & Wooders, Myrna Holtz, 1982. "Cores of partitioning games," Mathematical Social Sciences, Elsevier, vol. 3(4), pages 313-327, December.
  5. Greenberg, J. & Weber, S., 1991. "Stable Coalition Structure with Unidimensional Set of Alternatives," Papers 91-11, York (Canada) - Department of Economics.
  6. Jehiel, Philippe & Scotchmer, Suzanne, 2001. "Constitutional Rules of Exclusion in Jurisdiction Formation," Review of Economic Studies, Wiley Blackwell, vol. 68(2), pages 393-413, April.
  7. Sharkey,William W., 1983. "The Theory of Natural Monopoly," Cambridge Books, Cambridge University Press, number 9780521271943, October.
  8. Guillaume Haeringer, 2000. "Stable Coalition Structures with Fixed Decision Schme," UFAE and IAE Working Papers 471.00, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
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Cited by:
  1. Page Jr., Frank H. & Wooders, Myrna, 2007. "Networks and clubs," Journal of Economic Behavior & Organization, Elsevier, vol. 64(3-4), pages 406-425.
  2. Sun,N. & Trockel,W. & Yang,Z., 2004. "Competitive outcomes and endogenous coalition formation in an n-person game," Working Papers 358, Bielefeld University, Center for Mathematical Economics.
  3. Garance Genicot, Orazio Attanasio, Abigail Barr, Juan Camilo Cardenas and Costas Meghir, 2011. "Risk Pooling, Risk Preferences, and Social Networks," Working Papers gueconwpa~11-11-05, Georgetown University, Department of Economics.
  4. Demange, Gabrielle, 2010. "Sharing information in Web communities," Games and Economic Behavior, Elsevier, vol. 68(2), pages 580-601, March.
  5. Frank H. Page, Jr. & Myrna H. Wooders, 2005. "Club Formation Games with Farsighted Agents," Vanderbilt University Department of Economics Working Papers 0529, Vanderbilt University Department of Economics.

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