Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/171588
Authors: 
Gersbach, Hans
Haller, Hans
Year of Publication: 
2011
Series/Report no.: 
Economics Working Paper Series 11/145
Abstract: 
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.
Subjects: 
Group formation
competitive markets
human relation
exit
JEL: 
D41
D50
D60
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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