Competition among institutions

Andrew Caplin, Barry Nalebuff

    Research output: Contribution to journalArticle

    Abstract

    Economic theory offers two different approaches to the analysis of group formation and the role of institutions. General equilibrium approach explores the influence of the economic environment on formation of coalitions. Game theory explores the influence of institutional rules on equilibrium outcomes. We introduce an integrative approach - an institution's policy depends on its membership, while its membership depends on the policies of all the institutions. We present three distinct mathematical approaches to these models, highlighting the algebraic nature of the question of existence of equilibrium. Our apparatus cover many economic and political environments, including cases with multiple dimensions and multiple institutions.Journal of Economic LiteratureClassification Numbers: C62, D50, D71, D72, H11, H40, R13, R53.

    Original languageEnglish (US)
    Pages (from-to)306-342
    Number of pages37
    JournalJournal of Economic Theory
    Volume72
    Issue number2
    DOIs
    StatePublished - Feb 1997

    ASJC Scopus subject areas

    • Economics and Econometrics

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