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Formation of Convoys, Tennis Ladders, Colleges and Related Groups

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Author Info

  • John Hartwick
  • Yoshitsugu Kanemoto

Abstract

We analyze the formation of a hierarchy of groups such as herds, members of a "rung" in a tennis ladder, students at a particular quality of college, or club members sharing a local public good. An individual is interested in maximizing her individual payoff which depends on a variable associated with the group and a value associated with her rank within the group. We analyze equilibria, and the stability of the equilibrium set of groups, and welfare.

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Bibliographic Info

Paper provided by Queen's University, Department of Economics in its series Working Papers with number 589.

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Length: 35 pages
Date of creation: 1985
Date of revision:
Handle: RePEc:qed:wpaper:589

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Cited by:
  1. Damiano, Ettore & Li, Hao & Suen, Wing, 2005. "First in village or second in Rome?," Microeconomics.ca working papers, Vancouver School of Economics damiano-05-01-25-10-14-13, Vancouver School of Economics, revised 26 Jan 2005.

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