Club Theory and Household Formation
CER-ETH - Center of Economic Research at ETH Zurich, Working Paper No. 09/110
30 Pages Posted: 18 Jul 2009
Date Written: July 2009
The relationship between our general equilibrium model with multi-member households and club models with multiple private goods is investigated. The main distinction in the definitions consists of the equilibrium concepts. As a rule, competitive equilibria among households where no group of consumers can benefit from forming a newhousehold and valuation equilibria prove equivalent in the absence of consumption externalities, but not in their presence.
Keywords: Household Behavior, Household Formation, General Equilibrium, Clubs
JEL Classification: D13, D50, D62, D71
Suggested Citation: Suggested Citation