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Abstract

Clubs are voluntarily-shared but excludable facilities prone to congestion. Examples include tolled trunk road, the telephone system and "gentlemen's" clubs. Despite 25 years of development, the clubs literature does not contain a satisfactory treatment of the membership of the sharing group which allows for differences in income and/or tastes and for agents' self-selection to club membership or non-membership. This paper provides such a treatment and applies it to profit-maximising and revenue-constrained welfare-maximising clubs and to the analysis of the social organisation of a facility of fixed size.

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