EconPapers    
Economics at your fingertips  
 

Externalities and Compensation:Primeval Games and Solutions

Yuan Ju and Peter Borm

No KERP 2005/05, Keele Economics Research Papers from Centre for Economic Research, Keele University

Abstract: The classical literature (Pigou (1920), Coase (1960), Arrow (1970)) and the relatively recent studies (cf. Varian (1994)) associate the externality problem with efficiency. This paper focuses explicitly on the compensation problem in the context of externalities. To capture the features of inter-individual externalities, this paper constructs a new game-theoretic framework: primeval games. These games are used to design normative compensation rules for the underlying compensation problems: the marginalistic rule, the concession rule, and the primeval rule. Characterizations of the marginalistic rule and the concession rule are provided and specific properties of the primeval rule are studied.

Keywords: Externality; compensation; primeval games; marginalistic rule; concession rule; primeval rule. (search for similar items in EconPapers)
JEL-codes: C71 D62 D63 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2005-03
New Economics Papers: this item is included in nep-gth
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.keele.ac.uk/depts/ec/wpapers/kerp0505.pdf (application/pdf)

Related works:
Journal Article: Externalities and compensation: Primeval games and solutions (2008) Downloads
Working Paper: Externalities and compensation: Primeval games and solutions (2008) Downloads
Working Paper: Externalities and Compensation: Primeval Games and Solutions (2005) Downloads
Working Paper: Externalities and Compensation: Primeval Games and Solutions (2005) Downloads
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:kee:kerpuk:2005/05

Ordering information: This working paper can be ordered from
Centre for Economic Research, Research Institute for Public Policy and Management, Keele University, Staffordshire ST5 5BG - United Kingdom
http://www.keele.ac.uk/depts/ec/cer/pubs_kerps.htm

Access Statistics for this paper

More papers in Keele Economics Research Papers from Centre for Economic Research, Keele University Department of Economics, University of Keele, Keele, Staffordshire, ST5 5BG - United Kingdom. Contact information at EDIRC.
Bibliographic data for series maintained by Martin E. Diedrich ( this e-mail address is bad, please contact ).

 
Page updated 2025-03-30
Handle: RePEc:kee:kerpuk:2005/05