An institution formed to supply an excludable public good. The defining feature of a club is that it can exclude non-members from the use of its facilities. Exclusion permits a price to be charged for membership which allows efficient provision of the public good by the club to its members. The concept of a club has wide application, from the analysis of sports clubs to the study of international organizations such as NATO.
|Reference: Oxford Press Dictonary of Economics, 5th edt.|