Myths about the Optimal Club Size
8 Pages Posted: 17 Oct 2012
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: 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
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