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Externality Pricing in Club Economies

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Author Info
Suzanne Scotchmer.

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Abstract

The paper shows that competitive forces in club economies lead to admissions prices that can be decomposed as linear prices on externality-producing attributes, where each member pays the same amount per unit attribute contributed. The externalities prices are sufficient to cover the costs of services provided within the club.

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Publisher Info
Paper provided by University of California at Berkeley in its series Economics Working Papers with number 96-246.

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Date of creation: 01 Mar 1996
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Handle: RePEc:ucb:calbwp:96-246

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  1. Bryan Ellickson & Birgit Grodal & Suzanne Scotchmer & William R. Zame, 1998. "Clubs and the Market: Continuum Economies," Microeconomics 9802002, EconWPA. [Downloadable!]
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  2. Bryan Ellickson & Birgit Grodal & Suzanne Scotchmer & William Zame, 1997. "Clubs and the Market: Large Finite Economies," UCLA Economics Working Papers 766, UCLA Department of Economics. [Downloadable!]
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This page was last updated on 2009-10-31.

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