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Competitive Markets, Collective Decisions and Group Formation

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  • Hans Gersbach

    (University of Heidelberg)

  • Hans Haller

    (Virginia Polytechnic Institute and State University)

Abstract

We consider a general equilibrium model where households operating in a competitive market environment can have several members and make efficient collective consumption decisions. Individuals have the option to leave the household and make it on their own or join another household. We study the effect of these outside options on household formation, household stability, equilibrium existence, and equilibrium efficiency.

Suggested Citation

  • Hans Gersbach & Hans Haller, 2002. "Competitive Markets, Collective Decisions and Group Formation," Discussion Papers 02-11, University of Copenhagen. Department of Economics.
  • Handle: RePEc:kud:kuiedp:0211
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    File URL: http://www.econ.ku.dk/english/research/publications/wp/2002/0211.pdf/
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    References listed on IDEAS

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    1. Haller, Hans, 2000. "Household Decisions and Equilibrium Efficiency," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 41(4), pages 835-847, November.
    2. Hans Gersbach & Hans Haller, 2005. "When inefficiency begets efficiency," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 25(1), pages 105-121, January.
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    12. Dreze, J H & Greenberg, J, 1980. "Hedonic Coalitions: Optimality and Stability," Econometrica, Econometric Society, vol. 48(4), pages 987-1003, May.
    13. Hans Gersbach & Hans Haller, 2001. "Collective Decisions and Competitive Markets," Review of Economic Studies, Oxford University Press, vol. 68(2), pages 347-368.
    14. Philippe Jehiel & Suzanne Scotchmer, 2001. "Constitutional Rules of Exclusion in Jurisdiction Formation," Review of Economic Studies, Oxford University Press, vol. 68(2), pages 393-413.
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    Citations

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    Cited by:

    1. Hans Gersbach & Hans Haller, 2011. "General Equilibrium with Multi-Member Households and Production," CESifo Working Paper Series 3659, CESifo.
    2. Gersbach, Hans & Haller, Hans, 2010. "Club theory and household formation," Journal of Mathematical Economics, Elsevier, vol. 46(5), pages 715-724, September.
    3. Pierre Salmon, 2003. "The assignment of powers in an open-ended European Union," Post-Print hal-00445601, HAL.
    4. Hans Gersbach & Hans Haller, 2009. "Bargaining power and equilibrium consumption," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 33(4), pages 665-690, November.
    5. Hans Gersbach & Hans Haller, 2011. "Bargaining cum voice," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 36(2), pages 199-225, February.
    6. Hans Gersbach & Hans Haller, 2006. "Voice and Bargaining Power," CESifo Working Paper Series 1668, CESifo.
    7. Hans Gersbach & Hans Haller, 2005. "When inefficiency begets efficiency," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 25(1), pages 105-121, January.
    8. Hans Gersbach & Hans Haller, 2008. "Exit and Power in General Equilibrium," CESifo Working Paper Series 2369, CESifo.
    9. Michele Gori & Antonio Villanacci, 2011. "A bargaining model in general equilibrium," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 46(3), pages 327-375, April.

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    More about this item

    Keywords

    household behavior; household formation; collective decision making; general equilibrium;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General

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