Theory of Clubs

Discipline: Economics

Based on work by American economists Charles Tiebout (1924-1968) and James M. Buchanan (1919- ), theory of clubs studies the optimal size of groups of people with a shared consumption (pools, clubs, museums), and the optimal provision of the goods or services.

A club good is excludable in that it is possible to prevent its consumption by entire groups of people, but it is also a non-rival good in that its consumption by one individual does not curb the consumption of another individual.

Source:
C Tiebout, 'A Pure Theory of Local Expentures', Journal of Political Economy, vol. LXIV (1954), 416-24

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