A human relations paradox

H. Gersbach and H. Haller

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.

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Year of publication:	[2011] ; This version: April 2011
Authors:	Gersbach, Hans ; Haller, Hans
Publisher:	Zürich : CER-ETH - Center of Economic Research at ETH Zurich
Subject:	Group formation \| competitive markets \| human relation \| exit \| Soziale Beziehungen \| Social relations \| Gruppenentscheidung \| Group decision-making \| Mitgliedschaft \| Membership \| Wohlfahrtsanalyse \| Welfare analysis \| Allgemeines Gleichgewicht \| General equilibrium \| Vollkommener Wettbewerb \| Perfect competition \| Wohlfahrtsökonomik \| Welfare economics

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Extent:	1 Online-Ressource (circa 13 Seiten)
Series:	Working papers of the Center of Economic Research at ETH Zurich. - Zürich : Inst., ZDB-ID 2099103-4. - Vol. 11, 145 (April 2011)
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Other identifiers:	10.3929/ethz-a-006435852 [DOI] hdl:10419/171588 [Handle]
Classification:	D41 - Perfect Competition ; D50 - General Equilibrium and Disequilibrium. General ; D60 - Welfare Economics. General
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10009236279