Competitive Markets, Collective Decisions and Group Formation

Gersbach, Hans; Haller, Hans H.

doi:10.2139/ssrn.415021

Download This Paper

Open PDF in Browser

Add Paper to My Library

Competitive Markets, Collective Decisions and Group Formation

49 Pages Posted: 17 Jun 2003

See all articles by Hans Gersbach

Hans Gersbach

ETH Zurich - CER-ETH -Center of Economic Research; IZA Institute of Labor Economics; CESifo (Center for Economic Studies and Ifo Institute); Centre for Economic Policy Research (CEPR)

Hans H. Haller

Virginia Tech - Department of Economics

Date Written: May 2003

Abstract

We consider a general equilibrium model where groups operating in a competitive market environment can have several members and make efficient collective consumption decisions. Individuals have the option to leave the group and make it on their own or join another group. We study the effect of these outside options on group formation, group stability, equilibrium existence, and equilibrium efficiency.

Keywords: Household Behavior, Household Formation, Collective Decision Making, General Equilibrium

JEL Classification: D10, D50, D62, D70

Suggested Citation: Suggested Citation

Gersbach, Hans and Haller, Hans H., Competitive Markets, Collective Decisions and Group Formation (May 2003). Available at SSRN: https://ssrn.com/abstract=415021 or http://dx.doi.org/10.2139/ssrn.415021