VALUATION EQUILIBRIUM WITH CLUBS

This paper considers model worlds in which there is a continuum of ind ividuals who form finite-sized associations to undertake joint activit ies. We show how, through a suitable choice of commodity space, restri ctions on the composition of feasible groups can be incorporated into the specification of the consumption and production sets of the econom y. We also show that if there are a finite number of types, then the c lassical results From the competitive analysis of convex finite-agent economies can be reinterpreted to apply. Journal of Economic Literatur e Classification Numbers: D51, H41. (C) 1997 Academic Press.