Non-unified households: the emergence of alternative approaches in economics
Nonunitary models
Assume efficiency (pareto optimality) – questioning how to achieve it?
Bargaining model to decision making gain from cooperation > separation. Minimum welfare level or break down of the household
More polar version of household economy.
- non cooperative model
assume 1. individual members have differing preferences
2. one may also operate as autonomous sub-economies.
3. Each individual control own income (not pooled resources)
still live together non-cooperative equilibrium within household
Alternative model of household
Goes beyond threat point, price and income
It incorporate structure and ideology
It incorporate non wage income and amount of leisure time.