The Number of Organizations in Heterogeneous Societies
AbstractI consider a society with heterogeneous individuals who can form organizations for the production of a differentiated service. An arrangement of organizations is said to be split up stable when there is no majority to split any of the organizations. Unlike other equilibrium concepts in the literature, the largest number of organizations that is split up stable corresponds to the socially optimal number of organizations, with a possibility of over provision of one organization. The analysis is extended to a case with endogeneous membership, where it is shown that the results remain the same.
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Bibliographic InfoPaper provided by Oslo University, Department of Economics in its series Memorandum with number 08/2010.
Length: 24 pages
Date of creation: 27 May 2010
Date of revision:
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Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Phone: 22 85 51 27
Fax: 22 85 50 35
Web page: http://www.oekonomi.uio.no/indexe.html
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Organizations; public goods; split up stability; efficiency; endogneous membership;
Find related papers by JEL classification:
- D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
- D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
- H49 - Public Economics - - Publicly Provided Goods - - - Other
- L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs
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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alexei Savvateev & Michel Le Breton & Valery Makarov & Shlomo Weber, 2008. "Multiple Membership and Federal Sructures," Working Papers 2008.41, Fondazione Eni Enrico Mattei.
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