Price taking equilibrium in economies with multiple memberships in clubs and unbounded club sizes
Allouch, Nizar and Wooders, Myrna Holtz. (2008) Price taking equilibrium in economies with multiple memberships in clubs and unbounded club sizes. Journal of Economic Theory, Vol.140 (No.1). pp. 246-278. ISSN 0022-0531Full text not available from this repository.
Official URL: http://dx.doi.org/10.1016/j.jet.2007.07.006
We model an economy with clubs (or jurisdictions) where individuals may belong to multiple clubs and where clubs sizes are arbitrary-clubs may be restricted to consist of only one or two persons, or as large as the entire economy, or anything in-between. Notions of price-taking equilibrium and the core, both with communication costs, are introduced. These notions take into account that there is a small communication cost of deviating from a given outcome. We demonstrate that, given communication costs, for all sufficiently large economies the core is nonempty and the set of price-taking equilibrium outcomes is equivalent to the core. (c) 2007 Elsevier Inc. All rights reserved.
|Item Type:||Journal Article|
|Subjects:||H Social Sciences > HB Economic Theory
H Social Sciences > HF Commerce
|Divisions:||Faculty of Social Sciences > Economics
Faculty of Social Sciences > Centre for the Study of Globalisation and Regionalisation
|Library of Congress Subject Headings (LCSH):||Pricing, Equilibrium (Economics) -- Mathematical models, Social networks, Edgeworth expansions, Clubs -- Accounting, Public goods -- Pricing -- Mathematical models|
|Journal or Publication Title:||Journal of Economic Theory|
|Official Date:||May 2008|
|Number of Pages:||33|
|Page Range:||pp. 246-278|
|Access rights to Published version:||Restricted or Subscription Access|
This paper originally appeared as University of Warwick Department of Economics Working Paper #639 (2002). The
|Version or Related Resource:||Allouch, N. and Wooders, M.H. (2002). Competitive pricing in socially networked economies. [Coventry] : University of Warwick, Economics Department. (Warwick economic research papers, no.639). http://wrap.warwick.ac.uk/id/eprint/1551|
 C.D. Aliprantis, D.J. Brown, O. Burkinshaw, Edgeworth equilibria, Econometrica 55 (1987) 1109–1137.
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