Collective Decisions and Competitive Markets |
| |
| Authors: | Hans Gersbach & Hans Haller |
| |
| Institution: | University of Heidelberg,;Virginia Polytechnic Institute and State University |
| |
| Abstract: | In a general equilibrium model, we allow for households with several, typically heterogeneous, members; households that make (efficient) collective consumption decisions where different households may use different collective decision mechanisms; yet households that operate within a competitive market environment. The interaction of two allocation mechanisms, collective decisions and competitive markets, is investigated, with a focus on the efficiency properties and decentralization possibilities of the dual allocation mechanism. |
| |
| Keywords: | |
|
|
