EconPapers    
Economics at your fingertips  
 

The social cost problem, rights, and the (non)empty core

Stéphane Gonzalez (), Alain Marciano and Philippe Solal

Journal of Public Economic Theory, 2019, vol. 21, issue 2, 347-365

Abstract: We revisit the “Coase theorem” through the lens of a cooperative game model which takes into account the assignment of rights among agents involved in a problem of social cost. We consider the case where one polluter interacts with many potential victims. Given an assignment or a mapping of rights, we represent a social cost problem by a cooperative game. A solution consists in a payoff vector. We introduce three properties for a mapping of rights. First, core compatibility indicates that the core of the associated cooperative games is nonempty. Second, Kaldor‐Hicks core compatibility indicates that there is a payoff vector in the core where victims are fully compensated for the damage once the negotiations are completed. Third, no veto power for a victim says that no victim has the power to veto an agreement signed by the rest of the society. We then demonstrate two main results. First, core compatibility is satisfied if and only if the rights are assigned either to the polluter or to the entire set of victims. Second, there is no mapping of rights satisfying Kaldor‐Hicks core compatibility and no veto power for a victim.

Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://doi.org/10.1111/jpet.12334

Related works:
Working Paper: The social cost problem, rights, and the (non)empty core (2019)
Working Paper: The social cost problem, rights and the (non)empty core (2019)
Working Paper: The social cost problem, rights and the (non)empty core (2017)
Working Paper: The social cost problem, rights and the (non)empty core (2017)
Working Paper: The social cost problem, rights and the (non)empty core (2017)
Working Paper: The social cost problem, rights and the (non)empty core (2017)
Working Paper: The social cost problem, rights and the (non)empty core (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jpbect:v:21:y:2019:i:2:p:347-365

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1097-3923

Access Statistics for this article

Journal of Public Economic Theory is currently edited by Rabah Amir, Gareth Myles and Myrna Wooders

More articles in Journal of Public Economic Theory from Association for Public Economic Theory Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2025-03-22
Handle: RePEc:bla:jpbect:v:21:y:2019:i:2:p:347-365