Working Paper
Competitive Markets, Collective Decisions and Group Formation
Hans Gersbach, Hans Haller
CESifo, Munich, 2003
CESifo Working Paper No. 953
CESifo, Munich, 2003
CESifo Working Paper No. 953
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.
CESifo Category
Empirical and Theoretical Methods
Empirical and Theoretical Methods
Keywords: household behavior, household formation, collective decision making, general equilibrium
JEL Classification: D100,D500,D620,D700