We study the relationship between social segmentation and income inequality by means of the economic theory of clubs with private provision of the club good. After having characterized the equilibrium partition of society in clubs and investigating its characteristics, we show how the clubs'...

Examples abound in economics, politics and society where agents can enter partial cooperation schemes, i.e. they can collude with a subset of agents. Several constributions devoted to specific settings have claimed that such partial cooperation actually worsens welfare compared to the...

In contrast to Mundell's inquiry on the optimality of currency areas, this paper aims to understand under what circumstances will a Pareto-dominant monetary union be established. Using a multi-country overlapping generations model, we highlight gains from monetary union arising from reduced...

We consider a game where agents commit to action for two periods. This implies two different patterns of decisions: agents can synchronize or stagger their decisions. We compare the outcomes of both timing patterns, and show that spillovers and strategic interactions are crucial for such a...