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Decentralization in Replicated Club Economies with Multiple Private Goods

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  • Gilles, Robert P.
  • Scotchmer, Suzanne

Abstract

We show that exhaustion of blocking opportunities is a sufficient condition such that every allocation in the core of a replicated club economy can be decentralized as a competitive equilibrium, and that a weaker condition efficient scale is a necessary condition such that any allocation in the core can be decentralized. Efficient scale is defined with respect to the economy as a whole, and not with respect to individual club sizes. These decentralization results do not require the Euclidean structure and monotonicity assumed in Lindahl equilibrium, do not require convexity of preferences or costs, and do not require the strong assumption that private goods are esssential.
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  • Gilles, Robert P. & Scotchmer, Suzanne, 1995. "Decentralization in Replicated Club Economies with Multiple Private Goods," Department of Economics, Working Paper Series qt22k559dk, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
  • Handle: RePEc:cdl:econwp:qt22k559dk
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    References listed on IDEAS

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    1. Engl, Greg & Scotchmer, Suzanne, 1996. "The core and the hedonic core: Equivalence and comparative statics," Journal of Mathematical Economics, Elsevier, vol. 26(2), pages 209-248.
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    15. Diamantaras, Dimitrios & Gilles, Robert P & Scotchmer, Suzanne, 1996. "Decentralization of Pareto Optima in Economies with Public Projects, Nonessential Private Goods and Convex Costs," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 8(3), pages 555-564, October.
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    21. Robert P. Gilles & Suzanne Scotchmer & Dimitrios Diamantaras, 1996. "Decentralization of Pareto optima in economies with public projects, nonessential private goods and convex costs (☆)," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 8(3), pages 555-564.
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    Citations

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    Cited by:

    1. van Raalte, C.L.J.P., 1996. "Market formation and market selection," Other publications TiSEM 5b11cea5-dfe7-4a8c-adb9-f, Tilburg University, School of Economics and Management.
    2. Dennis Epple & Thomas Romer & Holger Sieg, 1999. "The Tiebout Hypothesis and Majority Rule: An Empirical Analysis," NBER Working Papers 6977, National Bureau of Economic Research, Inc.
    3. Hans Gersbach & Hans Haller, 2011. "Bargaining cum voice," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 36(2), pages 199-225, February.
    4. 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.
    5. Grigoriadis, Theocharis & Torgler, Benno, 2013. "Religious identity, public goods and centralization: Evidence from Russian and Israeli cities," Discussion Papers 2013/13, Free University Berlin, School of Business & Economics.
    6. 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.
    7. 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.
    8. Maria Graziano & Maria Romaniello, 2012. "Linear cost share equilibria and the veto power of the grand coalition," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 38(2), pages 269-303, February.
    9. Gersbach, Hans & Haller, Hans, 2011. "Groups, collective decisions and markets," Journal of Economic Theory, Elsevier, vol. 146(1), pages 275-299, January.
    10. Gersbach, Hans & Haller, Hans, 2010. "Club theory and household formation," Journal of Mathematical Economics, Elsevier, vol. 46(5), pages 715-724, September.
    11. Ten Raa, T. & Gilles, R.P., 2003. "Lindahl Equilibrium and Schweitzer's Open Club Model Semi-Public Goods," Discussion Paper 2003-56, Tilburg University, Center for Economic Research.
    12. ten Raa, Thijs & Gilles, Robert P., 2005. "Lindahl equilibrium and Schweizer's open club model with semipublic goods," Mathematical Social Sciences, Elsevier, vol. 49(3), pages 295-307, May.
    13. Hans Gersbach & Hans Haller & Hideo Konishi, 2015. "Household formation and markets," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 59(3), pages 461-507, August.
    14. Gilles, Robert P. & Lazarova, Emiliya A. & Ruys, Pieter H.M., 2015. "Stability in a network economy: The role of institutions," Journal of Economic Behavior & Organization, Elsevier, vol. 119(C), pages 375-399.
    15. Gersbach, Hans & Haller, Hans, 2006. "Clubs and Households," CEPR Discussion Papers 5687, C.E.P.R. Discussion Papers.
    16. Allouch, Nizar & Wooders, Myrna, 2008. "Price taking equilibrium in economies with multiple memberships in clubs and unbounded club sizes," Journal of Economic Theory, Elsevier, vol. 140(1), pages 246-278, May.
    17. Helsley, Robert, 2001. "An Essay on Urban Economic Theory: Yorgos Y. Papageorgiou and David Pines, Kluwer Academic Publishers, Norwell, Massachusetts, 1999, ISBN 0-7923-8343-5," Regional Science and Urban Economics, Elsevier, vol. 31(5), pages 626-630, September.
    18. Holger Sieg & Dennis Epple & Richard Romano, 2003. "Peer effects, financial aid and selection of students into colleges and universities: an empirical analysis," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(5), pages 501-525.
    19. Hideo Konishi, 2001. "On Efficient Jurisdiction Structures in a Simple Local Public Goods Economy with Interjurisdictional Trade," Economics Bulletin, AccessEcon, vol. 8(2), pages 1-5.
    20. repec:spr:sochwe:v:50:y:2018:i:3:d:10.1007_s00355-017-1091-3 is not listed on IDEAS
    21. 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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