Tel. +45 35 32 30 82 -Fax +45 35 32 30 00 http://www.econ.ku.dk Abstract A premise of general equilibrium theory is that private goods are rival. Nevertheless, many private goods are shared, e.g., through barter, through co-ownership, or simply because one person's consumption a¤ects another person's wellbeing. We analyze consumption externalities from the perspective of club theory, and argue that, provided consumption externalities are limited in scope, they can be internalized through

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... hip fees to groups. Our main applications are to rental ma rket s a nd "p urcha s e cl ubs " i n whi ch memb ers sh are t he g o o ds t ha t t he y have individually purchased.