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The Theory of Clubs and Competitive Coalitions

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  • Myrna Wooders

    (Department of Economics, Vanderbilt University, Nashville, Tennessee 37235)

Abstract

This review discusses research demonstrating that club economies and coalition economies with many participants and relatively small effective groups (clubs, jurisdictions, or coalitions) are competitive. Small groups are effective if all or almost all gains to collective activities can be realized by cooperation restricted to them. At this point, there are many papers in the literature demonstrating the competitiveness of club and coalition economies in a variety of contexts. To facilitate the exposition, I treat economies with quasi-linear utilities and games with side payments. The main concepts and results for this framework are discussed. Additionally, relationships are established with regard to broader models of club and coalition economies, including very recent contributions to the literature.

Suggested Citation

  • Myrna Wooders, 2012. "The Theory of Clubs and Competitive Coalitions," Annual Review of Economics, Annual Reviews, vol. 4(1), pages 595-626, July.
    • Handle: RePEc:anr:reveco:v:4:y:2012:p:595-626
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    File URL: http://www.annualreviews.org/doi/abs/10.1146/annurev-economics-080511-111006
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    Citations

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    Cited by:

    1. Philippe Jehiel & Laurent Lamy, 2018. "A Mechanism Design Approach to the Tiebout Hypothesis," Journal of Political Economy, University of Chicago Press, vol. 126(2), pages 735-760.

    More about this item

    Keywords

    core; jurisdictions; f-coref; core-equilibrium equivalence; Edgeworth equivalence; continuum economies with clubs; crowding types; equal-treatment core;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • H4 - Public Economics - - Publicly Provided Goods

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