-- The hardening of alliances in the 1890s -- Power, wealth, and time in the mercantilist period -- Britain's naval scare of …

We integrate individual power in groups into general equilibrium models with endogenous group formation. We distinguish … between formal power (the say in group decisions) and real power (utility gain from being in groups). Their values will be … determined as part of the equilibrium. We find that higher formal power does not necessarily translate into higher equilibrium …