An Economic Approach To Voluntary Association
We develop an economic model of association based on voluntary contributions. Different equilibria corresponding to the different modes of formation of associations are analyzed and the results are compared with existing empirical literature. The main contribution consists in formalizing the voluntary association as a means of providing collectiveconsumption goods or services. We introduce the concept of the subjective quality as a possible incentive for volunteering. The model stresses the importance of non-pecuniary rewards and of accepted differentiation for well-functioning of voluntary organizations.
|Date of creation:||15 Dec 2008|
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