Stable Economic Cooperation: A Relational Approach
CentER Discussion Paper Series No. 2008-25
47 Pages Posted: 10 Mar 2008
Date Written: February 1, 2008
We consider a relational economy in which economic agents participate in three types of relational economic activities: autarkic activities; binary matching activities; and plural cooperative activities. We introduce a stability notion and characterize stable interaction structures, both in the absence of externalities from cooperation as well as in the presence of size-based externalities. It is shown that institutional elements such as the emergence of socio-economic roles and organizations based on hierarchical leadership structures support and promote stable economic development.
Keywords: Cooperatives, Networks, Clubs, Relational economies, Stable matchings
JEL Classification: C72, D71, D85
Suggested Citation: Suggested Citation