Clubs and Households
28 Pages Posted: 8 Aug 2006
Date Written: May 2006
Abstract
The relationship between our general equilibrium model with multimember 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 new household and valuation equilibria prove equivalent in the absence of consumption externalities, but not in their presence. We provide several examples and applications.
Keywords: Household behaviour, household formation, general equilibrium, clubs, consumption externalities
JEL Classification: D13, D50, D62, D71
Suggested Citation: Suggested Citation
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