We examine how a shift of bargaining power within households operating in a competitive market environment affects equilibrium allocation and welfare. If price effects are sufficiently small, then typically an individual benefits from an increase of bargaining power, necessarily to the detriment...

Collective consumption decisions taken by the members of a household may prove inefficient. This paper investigates the impact of inefficient household decisions on market performance when there is competitive exchange among households. Market efficiency can occur when household inefficiencies...