A human relations paradox
We present a variant of a general equilibrium model with group formation to study how changes of non-consumptive benefits from group formation impact on the well-being of group members. We identify a human relations paradox: Positive externalities increase, but none of the group members gains in equilibrium. Moreover, a member who experiences an increase of positive emotional benefits in a group may become worse off in equilibrium.
Year of publication: |
2013
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Authors: | Gersbach, Hans ; Haller, Hans |
Published in: |
Mathematical Social Sciences. - Elsevier, ISSN 0165-4896. - Vol. 65.2013, 2, p. 154-156
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Publisher: |
Elsevier |
Saved in:
Online Resource
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