SUSTAINABLE CLUBS UNDER VARIABLE PARTICIPATION

Abstract

In this paper we examine a two-period static club economy where individuals of distinct types decide whether or not to subscribe to clubs at each period. We show that neither facility sizes nor consumption group sizes are affected by variable participation rates because all individuals agree over the benefits of club quality. Variable participation rates and identical preferences for club quality, however, require the coexistence of part-time and full-time clubs. With an example, we show that the full-time clubs of the standard multiple-visit club model may not be sustainable.