Myths about the Optimal Club Size

8 Pages Posted: 17 Oct 2012

See all articles by Hak Choi

Hak Choi

Chienkuo Technology University - Department of International Business; Chung-Hua Institution for Economic Research

Date Written: October 16, 2012

Abstract

Buchanan (1965) works out a model that solves both the usage frequency and the desired membership number of a club. Ng (1973) argues that Buchanan’s solution is not optimal, and proposes to use marginal benefit, instead of average benefit, to work out the solution. This paper proves that neither proposal really solves the problem.

Keywords: Club, Social Welfare Function

JEL Classification: D71, H44

Suggested Citation

Choi, Hak, Myths about the Optimal Club Size (October 16, 2012). Available at SSRN: https://ssrn.com/abstract=2162731 or http://dx.doi.org/10.2139/ssrn.2162731

Hak Choi (Contact Author)

Chienkuo Technology University - Department of International Business ( email )

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Taiwan
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Chung-Hua Institution for Economic Research ( email )

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Taipei
Taiwan

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