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Clubs and the Market: Continuum Economies

Author

Listed:
  • Bryan Ellickson

    (UCLA)

  • Birgit Grodal

    (University of Copenhagen)

  • Suzanne Scotchmer

    (University of Berkeley)

  • William Zame

    (UCLA)

Abstract

This paper defines a general equilibrium model with exchange and club formation. Agents trade multiple private goods widely in the market, can belong to several clubs, and care about the characteristics of the other members of their clubs. The space of agents is a continuum, but clubs are finite. It is shown that (i) competitive equilibria exist, and (ii) the core coincides with the set of equilibrium states. The central subtlety is in modeling club memberships and expressing the notion that membership choices are consistent across the population.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Bryan Ellickson & Birgit Grodal & Suzanne Scotchmer & William Zame, 1997. "Clubs and the Market: Continuum Economies," UCLA Economics Working Papers 765, UCLA Department of Economics.
    • Handle: RePEc:cla:uclawp:765
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    References listed on IDEAS

    as
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    Cited by:

    1. 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.
    2. John P. Conley & Myrna Holtz Wooders, 1998. "The Tiebout Hypothesis: On the Existence of Pareto Efficient Competitive Equilibrium," Working Papers mwooders-98-06, University of Toronto, Department of Economics.
    3. Harold L. Cole & George J. Mailath & Andrew Postlewaite, "undated". ""Efficient Non-Contractible Investments''," CARESS Working Papres 98-13, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.

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    More about this item

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • H4 - Public Economics - - Publicly Provided Goods

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