Skip to main content

Valuation Equilibria With Clubs

Staff Report 174 | Published March 1, 1996

Download PDF


Edward C. Prescott Senior Monetary Advisor
Valuation Equilibria With Clubs


This paper considers model worlds in which there is a continuum of individuals who form finite-sized associations to undertake joint activities. We show how, through a suitable choice of commodity space, restrictions on the composition of feasible groups can be incorporated into the specification of the consumption and production sets of the economy. We also show that if there are a finite number of types, then the classical results from the competitive analysis of convex finite-agent economies can be reinterpreted to apply.

Published in: _Journal of Economic Theory_ (Vol. 74, No. 1, May 1997, pp. 19-39)