An Economic Approach to Voluntary Association

We develop an economic model of association based on voluntary contributions. Different equilibria corresponding to the different modes of formation of associations are analyzed and the results are compared with the existing empirical literature. The main contribution consists in analyzing voluntary associations as a means of providing collective consumption goods or services while allowing for some heterogeneity of preferences concerning the quality of these goods or services. Thus we introduce the concept of subjective quality as a possible incentive for volunteering. The model stresses the importance of non-pecuniary rewards and of accepted differentiation for the well-functioning of voluntary organizations.