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Externality pricing in club economies

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  • SCOTCHMER, SUZANNE

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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Suggested Citation

  • Scotchmer, Suzanne, 1996. "Externality pricing in club economies," Ricerche Economiche, Elsevier, vol. 50(4), pages 347-366, December.
  • Handle: RePEc:eee:riceco:v:50:y:1996:i:4:p:347-366
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    Cited by:

    1. 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.
    2. 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.
    3. Gilles, Robert P. & Scotchmer, Suzanne, 1997. "Decentralization in Replicated Club Economies with Multiple Private Goods," Journal of Economic Theory, Elsevier, vol. 72(2), pages 363-387, February.
    4. Scotchmer, Suzanne, 1997. "On price-taking equilibria in club economies with nonanonymous crowding," Journal of Public Economics, Elsevier, vol. 65(1), pages 75-88, July.

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