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Competitive equilibria and robust efficiency with club goods

Author

Listed:
  • Anuj Bhowmik

    (Indian Statistical Institute, Kolkata)

  • Japneet Kaur

    (Indira Gandhi Institute of Development Research)

Abstract

The paper establishes an equivalence theorem (which states that an allocation is a club equilibrium allocation if and only if it is robustly efficient) in a setting where individuals not only trade private goods but can choose to become members of a finite number of clubs, where each club is defined by the external characteristics of its participants and the project in which they are involved. Here competitive equilibrium allocations are characterized using the veto power of the set of all agents, i.e. rather than considering the blocking power of multiple coalitions, we only take the coalition comprising all agents and study its blocking power in a group of economies attained by slightly modifying each agent's initial endowment.

Suggested Citation

  • Anuj Bhowmik & Japneet Kaur, 2022. "Competitive equilibria and robust efficiency with club goods," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2022-014, Indira Gandhi Institute of Development Research, Mumbai, India.
    • Handle: RePEc:ind:igiwpp:2022-014
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    File URL: http://www.igidr.ac.in/pdf/publication/WP-2022-014.pdf
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    References listed on IDEAS

    as
    1. Sandler, Todd, 1984. "Club optimality : Further Clarifications," Economics Letters, Elsevier, vol. 14(1), pages 61-65.
    2. repec:dau:papers:123456789/2344 is not listed on IDEAS
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    Cited by:

    1. Bhowmik, Anuj & Saha, Sandipan, 2022. "On blocking mechanisms in economies with club goods," MPRA Paper 114928, University Library of Munich, Germany.
    2. Bhowmik, Anuj & Saha, Sandipan, 2023. "Bargaining-equilibrium equivalence," MPRA Paper 117194, University Library of Munich, Germany.

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    More about this item

    Keywords

    Club goods; Robustly efficient allocations; core-Walras equivalence; Walrasian equilibria;
    All these keywords.

    JEL classification:

    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • D60 - Microeconomics - - Welfare Economics - - - General
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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