ON THE CORE OF AN ECONOMIC SYSTEM WITH EXTERNALITIES,
Abstract
The document covers an investigation of the social stability of joint undertakings to allocate costs or benefits of the external effects of productive economic activity. Social stability is taken to mean that all coalitions or potential coalitions of affected parties are satisfied simultaneously. This is equivalent to being in the core of the corresponding multiperson game. A number of simple pollution-type models that have a wide diversity of core behavior are examined. Tax and subsidy schemes are discussed in regard to their potential for the achievement of Pareto optimality in the face of externalities of both types. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 01, 1969
- Accession Number
- AD0687434
Entities
People
- Lloyd Shapley
- Martin Shubik
Organizations
- RAND Corporation