TY - JOUR
T1 - Competition among institutions
AU - Caplin, Andrew
AU - Nalebuff, Barry
N1 - Funding Information:
* We thank Don Brown, Mike Magill, Andreu Mas-Collel, William Massey, James Munkres, Thomas Romer, and two anonymous referees for their help. This research was supported by the Deutsche Forschungsgemeinschaft, Gottfried-Wilhelm-Liebniz-Forderpreis during the authors’ stay at BoWo 90 and by NSF Grant SES91-22321. 1See, for example, Prescott and Townsend [24].
PY - 1997/2
Y1 - 1997/2
N2 - 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.
AB - 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.
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U2 - 10.1006/jeth.1996.2212
DO - 10.1006/jeth.1996.2212
M3 - Article
AN - SCOPUS:0031065896
SN - 0022-0531
VL - 72
SP - 306
EP - 342
JO - Journal of Economic Theory
JF - Journal of Economic Theory
IS - 2
ER -