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Club Theory and Household Formation

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Author Info
Gersbach, Hans (CER-ETH Zurich)
Haller, Hans () (Department of Economics, Virginia Polytechnic Institute and State University)

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Abstract

The relationship between our general equilibrium model with multi- member households and club models with multiple private goods is investigated. The main distinction in the definitions consists of the equilibrium concepts. As a rule, competitive equilibria among households where no group of consumers can benefit from forming a new household and valuation equilibria prove equivalent in the absence of consumption externalities, but not in their presence.

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Publisher Info
Paper provided by Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim in its series Sonderforschungsbereich 504 Publications with number 08-11.

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Length: 25 pages
Date of creation: 17 Jul 2008
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Handle: RePEc:xrs:sfbmaa:08-11

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