This paper defines a general equilibrium model with exchange and club formation. Agents trade multiple private goods widely in the market, can belong to several clubs, and care about the characteristics of the other members of their clubs. The space of agents is a continuum, but clubs are...

Two of the most important refinements of the Nash equilibrium concept for extensive form games with perfect recall are Selten's (1975) {\it perfect equilibrium\/} and Kreps and Wilson's (1982) more inclusive {\it sequential equilibrium\/}. These two equilibrium refinements are motivated in very...