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Groups, collective decisions and markets

Groups, collective decisions and markets,10.1016/j.jet.2010.10.004,Journal of Economic Theory,Hans Gersbach,Hans Haller

Groups, collective decisions and markets  
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We consider a general equilibrium model where multi-member households make efficient collective consumption decisions and operate in a competitive market environment. Individuals have the option to leave the household and make it on their own or join another household. We study the effect of these outside options on household formation, household stability and equilibrium existence.
Journal: Journal of Economic Theory - J ECON THEOR , vol. 146, no. 1, pp. 275-299, 2011
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