IDEAS home Printed from https://ideas.repec.org/a/sae/pubfin/v29y2001i1p83-95.html
   My bibliography  Save this article

Clubs, Advertising, and Cost Sharing

Author

Listed:
  • Kevin Siqueira

    (Clarkson University, siqueira@clarkson.edu)

Abstract

This article investigates the impact of advertising, an additional source of club revenue, on membership. This issue is placed within the context of advertising on the Internet and corporate sponsorship of local events or public institutions such as museums. Two scenarios are looked at. In the first setting, a club’s costs are shared among members and, in effect, also with a monopolist advertiser. It is then shown that the presence of advertising revenues could possibly limit the need for club financing and cost sharing via larger memberships. However, in the second setting where it is assumed that the club’s costs are completely funded by advertising and no membership fees are charged, it is shown that the club provider’s incentives are no longer contrary to those of the advertiser. The opposite holds, and there is no cost-sharing implication to cutback on membership.

Suggested Citation

  • Kevin Siqueira, 2001. "Clubs, Advertising, and Cost Sharing," Public Finance Review, , vol. 29(1), pages 83-95, January.
    • Handle: RePEc:sae:pubfin:v:29:y:2001:i:1:p:83-95
    DOI: 10.1177/109114210102900105
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/109114210102900105
    Download Restriction: no
    File URL: https://libkey.io/10.1177/109114210102900105?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. McGuire, Martin, 1974. "Group Segregation and Optimal Jurisdictions," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 112-132, Jan.-Feb..
    2. Glazer, Amihai & Niskanen, Esko & Scotchmer, Suzanne, 1997. "On the uses of club theory: Preface to the club theory symposium," Journal of Public Economics, Elsevier, vol. 65(1), pages 3-7, July.
    3. Adams, Roy D & Royer, Jeffrey S, 1977. "Income and Price Effects in the Economic Theory of Clubs," Public Finance = Finances publiques, , vol. 32(2), pages 141-158.
    4. Sterbenz, Frederic P & Sandler, Todd, 1992. "Sharing among Clubs: A Club of Clubs Theory," Oxford Economic Papers, Oxford University Press, vol. 44(1), pages 1-19, January.
    5. Sandler, Todd & Tschirhart, John T, 1980. "The Economic Theory of Clubs: An Evaluative Survey," Journal of Economic Literature, American Economic Association, vol. 18(4), pages 1481-1521, December.
    6. Stigler, George J & Becker, Gary S, 1977. "De Gustibus Non Est Disputandum," American Economic Review, American Economic Association, vol. 67(2), pages 76-90, March.
    7. Cornes,Richard & Sandler,Todd, 1996. "The Theory of Externalities, Public Goods, and Club Goods," Cambridge Books, Cambridge University Press, number 9780521477185, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Todd Sandler, 2013. "Buchanan clubs," Constitutional Political Economy, Springer, vol. 24(4), pages 265-284, December.
    2. Konrad, Kai A. & Rees, Ray, 2020. "Passports for sale: The political economy of conflict and cooperation in a meta-club," European Journal of Political Economy, Elsevier, vol. 62(C).
    3. Melle Marco C., 2014. "Eine europäische Bemessungsgrundlage für die Körperschaftsteuer? Konzeption und ordnungsökonomische Analyse / Conceptual design and constitutional economics analysis of a European tax base for corpora," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 65(1), pages 133-156, January.
    4. al-Nowaihi, Ali & Fraser, Clive D., 2007. "Is the public sector too large in an economy with club goods? A case when consumers differ in both tastes and incomes," Economic Modelling, Elsevier, vol. 24(6), pages 1018-1031, November.
    5. al-Nowaihi, Ali & Fraser, Clive D., 2012. "Does the public sector over-provide club goods? A general result," Economics Letters, Elsevier, vol. 117(2), pages 397-400.
    6. Samuel Cameron, 2002. "The Economics Of Partner Out Trading in Sexual Markets," Journal of Bioeconomics, Springer, vol. 4(3), pages 195-222, October.
    7. Fellner, Gerlinde & Lünser, Gabriele K., 2014. "Cooperation in local and global groups," Journal of Economic Behavior & Organization, Elsevier, vol. 108(C), pages 364-373.
    8. John P. Conley & Robert Driskill & Ping Wang, 2019. "Capitalization, decentralization, and intergenerational spillovers in a Tiebout economy with a durable public good," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 67(1), pages 1-27, February.
    9. Anderson, Simon P. & Gabszewicz, Jean J., 2006. "The Media and Advertising: A Tale of Two-Sided Markets," Handbook of the Economics of Art and Culture, in: V.A. Ginsburgh & D. Throsby (ed.), Handbook of the Economics of Art and Culture, edition 1, volume 1, chapter 18, pages 567-614, Elsevier.
    10. Bond, Jennifer Keeling, 2006. "Cooperative Growth and Decline: A Game Theoretic Approach to Understanding Members' Allocation Choices," 2006 Annual meeting, July 23-26, Long Beach, CA 21279, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Siqueira, Kevin Jay, 1998. "Issues of collective action: common agency, partial cooperation, and clubs," ISU General Staff Papers 1998010108000013526, Iowa State University, Department of Economics.
    12. David N King & Yue Ma, 2000. "Local Authority Size in Theory and Practice," Environment and Planning C, , vol. 18(3), pages 255-270, June.
    13. Brandi, Clara & Wohlgemuth, Michael, 2006. "Strategies of Flexible Integration and Enlargement of the European Union: a Club-theoretical and Constitutional Economics Perspective," Freiburg Discussion Papers on Constitutional Economics 06/7, Walter Eucken Institut e.V..
    14. Sergio Vergalli, 2008. "The Role of Community in Migration Dynamics," LABOUR, CEIS, vol. 22(3), pages 547-567, September.
    15. Klaus Wallner & Mike Burkart, 2000. "Club Enlargement: Early Versus Late Admittance," FMG Discussion Papers dp359, Financial Markets Group.
    16. Todd Sandler, 2015. "Collective action: fifty years later," Public Choice, Springer, vol. 164(3), pages 195-216, September.
    17. Joseph Joyce & Todd Sandler, 2008. "IMF retrospective and prospective: A public goods viewpoint," The Review of International Organizations, Springer, vol. 3(3), pages 221-238, September.
    18. Hideo Konishi, 2010. "Efficient Mixed Clubs: Nonlinear‐Pricing Equilibria With Entrepreneurial Managers," The Japanese Economic Review, Japanese Economic Association, vol. 61(1), pages 35-63, March.
    19. Bipasa Datta & Clive D. Fraser, 2017. "The company you keep: Qualitative uncertainty in providing a club good," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 19(4), pages 763-788, August.
    20. Michele Caputo & Francesco Forte, 2015. "Difficult Convergence among the Five Main European Union Countries and the Crisis of the Euro Area," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 43(4), pages 415-430, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:29:y:2001:i:1:p:83-95. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.