When studying the formation of trade between two countries, traditional modeling has described it as being primarily dependent on individual and bilateral characteristics of the two trading partners. It is likely, however, that trade is dependent not only on the two countries involved but on the...

The way people form groups when facing a coordination problem poses an economically interesting question. This paper addresses the issue of what type of clubs are formed when players must participate in a public goods game with the other players belonging to their selected club. A sequential...