DECENTRALIZATION IN REPLICATED CLUB ECONOMIES WITH MULTIPLE PRIVATE GOODS

We show that ''exhaustion of blocking opportunities'' is a sufficient condition such that every allocation in the core of a replicated club economy can be decentralized as a competitive equilibrium, and that a related condition ''efficient scale'' is necessary and - under an assu mption on endowments - sufficient such that competitive equilibrium ex ists and the core is nonempty. These results do not require the Euclid ean structure and monotonicity assumed in Lindahl equilibrium, do not require convexity of preferences or costs, and do not require the stro ng assumption that private goods are ''essential''. (C) 1997 Academic Press.