Flexible Integration? Mandatory and Minimum Participation Rules

B-Tier
Journal: Scandanavian Journal of Economics
Year: 2006
Volume: 108
Issue: 4
Pages: 683-702

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

For a club such as the European Union, an important question is whether a subset of the members should be allowed to form “inner clubs” and enhance cooperation. Flexible cooperation allows members to participate if and only if they benefit, but it leads to free‐riding when externalities are positive. I show that flexible cooperation is better if the heterogeneity is large and the externality small, but that rigid cooperation is the political equilibrium too often. Both regimes, however, are extreme variants of a more general system combining mandatory and minimum participation rules. For each rule, I characterize the optimum and the equilibrium.

Technical Details

RePEc Handle
repec:bla:scandj:v:108:y:2006:i:4:p:683-702
Journal Field
General
Author Count
1
Added to Database
2026-01-25