Resource constraint, replicability and mixed clubs: A reply
Resource constraint, replicability and mixed clubs: A reply
复制标题
资源限制、可复制性和混合俱乐部:答复
DOI:
10.1016/0047-2727(84)90038-0
复制
发表时间:
1984
期刊:
影响因子:
--
通讯作者:
D. Pinés
中科院分区:
文献类型:
--
作者:
E. Berglas;D. Pinés
Our paper [Berglas and Pines (19Sl)](BP hereafter) which is criticized in ‘Mixed Clubs: Further Observations’ by Sandler and Tschirhart (1984)(ST hereafter) introduces a unified approach to the models of clubs, local public goods and transportation. BP generalize these models by using less restrictive assumptions, and thus adapt some of the existing results to the more general framework. In particular, BP suggest a generalized condition for full financing, provide proof for the sustainability of the optimal structure of clubs by a price system and elaborate on the condition under which a system of segregated clubs is optimal. ST challenge the validity of some of the BP results, on the grounds that it uses a framework which is special and not representative of the literature. In particular ST argue that B-P’s model includes a full financing constraint and a utility function which differs from others, and thus the results regarding average cost pricing and the desirability of segregated clubs are not generally correct. In addition, ST argue that BP fail to make the appropriate distinction between replicable and nonreplicable clubs and therefore improperly treat both clubs and transportation systems within a unified framework.In the following discussion, we admit that BP deviate from the existing literature by offering a generalized union of the existing models. We clarify the issues of replicability and returns to scale in the club context and deny any imposition of a full financing constraint. We prove that the proposition of suboptimality of identically mixed clubs is general and is true for the ST model as well. We conclude with a dicussion of the application of the club model to transportation.