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Clubs and the Market: Large Finite Economies Author info | Abstract | Publisher info | Download info | Related research | Statistics Bryan Ellickson (University of California, Los Angeles)
Birgit Grodal (Institute of Economics, University of Copenhagen)
Suzanne Scotchmer (University of California, Berkeley)
William R. Zame (University of California, Los Angeles)
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We study large finite club economies in which agents can belong to several clubs, and care about the characteristics of the other club members. Club memberships must be integer consistent in aggregate. We show that states in the approximate core can approximately be decentralized by prices for private goods and for club memberships, that the approximate core is nonempty, and that approximate club equilibria exist. Our arguments use the convexification tools used for private goods economies, but we also develop a new tool to address the consistency requirement on memberships that are special to club economies. This tool allows us to overcome the integer consistency problems that are avoided in our (1999) paper by assuming a continuum of agents.
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Paper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number
99-05.
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Length: 43 pages
Date of creation: Jan 1999Date of revision:
Publication status: Published in: Journal of Econ Theory 101(1) 2001, 40-77Handle: RePEc:kud:kuiedp:9905Contact details of provider: Postal: Øster Farimagsgade 5, Building 26, DK-1353 Copenhagen K., Denmark Phone: (+45) 35 32 26 26 Fax: +45 35 32 30 00 Web page: http://www.econ.ku.dk More information through EDIRC
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Keywords: clubs ; e-cores ; approximate equilibrium ; decentralization ; Other versions of this item:
Article Ellickson, Bryan & Grodal, Birgit & Scotchmer, Suzanne & Zame, William R., 2001.
"Clubs and the Market: Large Finite Economies ,"
Journal of Economic Theory ,
Elsevier, vol. 101(1), pages 40-77, November.
[Downloadable!] (restricted) Paper Find related papers by JEL classification: D2 - Microeconomics - - Production and Organizations D5 - Microeconomics - - General Equilibrium and Disequilibrium H4 - Public Economics - - Publicly Provided Goods
This paper has been announced in the following NEP Reports :
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Bryan Ellickson and Birgit Grodal, Suzanne Scotchmer, and William R. Zame., 1997.
"Clubs and the Market: Continuum Economies ,"
Economics Working Papers
97-254, University of California at Berkeley.
[Downloadable!]
Other versions: Gilles, Robert P. & Scotchmer, Suzanne, 1997.
"Decentralization in Replicated Club Economies with Multiple Private Goods ,"
Journal of Economic Theory ,
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Cole, Harold L. & Prescott, Edward C., 1997.
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Other versions: Ellickson, Bryan, 1979.
"Competitive equilibrium with local public goods ,"
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Boadway, Robin, 1982.
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Greenberg, Joseph & Weber, Shlomo, 1986.
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Wooders, Myrna Holtz, 1989.
"A Tiebout theorem ,"
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Diamantaras, Dimitrios & Gilles, Robert P & Scotchmer, Suzanne, 1996.
"Decentralization of Pareto Optima in Economies with Public Projects, Nonessential Private Goods and Convex Costs ,"
Economic Theory ,
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Dimitrios Diamantaras & Robert P. Gilles, 1994.
"The Pure Theory of Public Goods: Efficiency, Decentralization, and the Core ,"
Public Economics
9403001, EconWPA.
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Other versions:
Diamantaras, Dimitrios & Gilles, Robert P, 1996.
"The Pure Theory of Public Goods: Efficiency, Dencentralization, and the Core ,"
International Economic Review ,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(4), pages 851-60, November.
Berglas, Eitan & Pines, David, 1980.
"Clubs as a case of competitive industry with goods of variable quality ,"
Economics Letters ,
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Scotchmer, Suzanne, 1985.
"Profit-maximizing clubs ,"
Journal of Public Economics ,
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Mas-Colell, Andreu, 1980.
"Efficiency and Decentralization in the Pure Theory of Public Goods ,"
The Quarterly Journal of Economics ,
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Greenberg, Joseph & Shitovitz, Benyamin, 1988.
"Consistent voting rules for competitive local public goods economies ,"
Journal of Economic Theory ,
Elsevier, vol. 46(2), pages 223-236, December.
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Robert P. Gilles and Suzanne Scotchmer., 1995.
"Decentralization in Replicated Club Economies with Multiple Private Goods ,"
Economics Working Papers
95-243, University of California at Berkeley.
Full
references Cited by : (explanations , 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.)
Gilles, R.P., 1999.
"Coalition provision of pure collective goods ,"
Discussion Paper
47, Tilburg University, Center for Economic Research.
[Downloadable!]
Bryan Ellickson & Birgit Grodal & Suzanne Scotchmer & William R. Zame, 1998.
"Clubs and the Market: Continuum Economies ,"
Microeconomics
9802002, EconWPA.
[Downloadable!]
Other versions: Nizar Allouch & Myrna Wooders, 2004.
"Price taking equilibrium in club economies with multiple memberships and unbounded club sizes ,"
Cahiers de la Maison des Sciences Economiques
b04109, Université Panthéon-Sorbonne (Paris 1).
[Downloadable!]
Other versions: Joon Song, 2007.
"Futures Market: Contractual Arrangement to Restrain Moral Hazard in Teams ,"
Economics Discussion Papers
633, University of Essex, Department of Economics.
[Downloadable!]
Bryan Ellickson & Birgit Grodal & Suzanne Scotchmer & William Zame, 2000.
"A Theory of Firm Formation and Skills Acquisition ,"
Econometric Society World Congress 2000 Contributed Papers
0359, Econometric Society.
[Downloadable!]
Bryan Ellickson & Birgit Grodal & Suzanne Scotchmer & William Zame, 1999.
"The Organization of Production, Consumption, and Learning ,"
Discussion Papers
03-23, University of Copenhagen. Department of Economics, revised Jun 2003.
[Downloadable!]
Allouch, Nizar & Wooders, Myrna, 2002.
"Competitive Pricing In Socially Networked Economies ,"
The Warwick Economics Research Paper Series (TWERPS)
639, University of Warwick, Department of Economics.
[Downloadable!]
Suzanne Scotchmer, 2002.
"Consumption Externalities, Rental Markets and Purchase Clubs ,"
Discussion Papers
03-25, University of Copenhagen. Department of Economics, revised May 2003.
[Downloadable!]
Hans Gersbach & Hans Haller, 2003.
"Competitive Markets, Collective Decisions and Group Formation ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo Group Munich.
[Downloadable!]
Other versions: Gersbach, Hans & Haller, Hans, 2006.
"Clubs and Households ,"
CEPR Discussion Papers
5687, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Harold L. Cole & George J. Mailath & Andrew Postlewaite, 1998.
"Efficient non-contractible investments ,"
Staff Report
253, Federal Reserve Bank of Minneapolis.
[Downloadable!]
Other versions: Xiong, Siyang & Zheng, Charles Zhoucheng, 2006.
"Core Equivalence Theorem with Production ,"
Staff General Research Papers
12697, Iowa State University, Department of Economics.
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