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Formation of Convoys, Tennis Ladders, Colleges and Related Groups

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  • John Hartwick
  • Yoshitsugu Kanemoto

Abstract

We analyze the formation of a hierarchy of groups such as herds, members of a "rung" in a tennis ladder, students at a particular quality of college, or club members sharing a local public good. An individual is interested in maximizing her individual payoff which depends on a variable associated with the group and a value associated with her rank within the group. We analyze equilibria, and the stability of the equilibrium set of groups, and welfare.

Suggested Citation

  • John Hartwick & Yoshitsugu Kanemoto, 1985. "Formation of Convoys, Tennis Ladders, Colleges and Related Groups," Working Paper 589, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:589
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    Cited by:

    1. Ettore Damiano & Hao Li & Wing Suen, 2010. "First In Village Or Second In Rome?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 51(1), pages 263-288, February.

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