Group formation: The interaction of increasing returns and preferences' diversity

Gabrielle Demange (1)

1 DELTA - Département et Laboratoire d'Economie Théorique et Appliquée

The chapter is organized as follows. Section 2 focuses on competition in a simple economy under increasing returns to scale and heterogeneous consumers. The concept of sustainable oligopoly is discussed and analyzed. Section 3 studies in a more general and abstract set up competition among groups in the absence of spillovers. Whereas Section 3 develops some insights of Section 2, it can be read first. Finally Section 4 analyzes public decisions in a simple public good economy through the previous approach, and addresses the interaction between free mobility and free entry under negative externalities.

Mots clés: group formation

Domaines: Economies et finances

Gabrielle Demange. Group formation: The interaction of increasing returns and preferences' diversity. Gabrielle Demange ; Myrna Wooders. Group Formation in Economics: Networks, Clubs and Coalitions, Cambridge University Press, pp.171-208, 2005. ⟨halshs-00573563⟩