Stable Economic Cooperation: A Relational Approach

R.P. Gilles, E.A. Lazarova, P.H.M. Ruys

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Abstract

We consider a relational economy in which economic agents participate in three types of relational economic activities: autarkic activities; binary matching activities; and plural cooperative activities. We introduce a stability notion and characterize stable interaction structures, both in the absence of externalities from cooperation as well as in the presence of size-based externalities. It is shown that institutional elements such as the emergence of socio-economic roles and organizations based on hierarchical leadership structures support and promote stable economic development.
Original languageEnglish
Place of PublicationTilburg
PublisherMicroeconomics
Number of pages47
Volume2008-25
Publication statusPublished - 2008

Publication series

NameCentER Discussion Paper
Volume2008-25

Keywords

  • Cooperatives
  • Networks
  • Clubs
  • Relational economies
  • Stable matchings

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