TY - JOUR
T1 - Symmetric smooth consumption externalities
AU - Crès, Hervé
N1 - Funding Information:
* I am grateful to Yves Balasko, Christian Ghiglino, Christine Lang, Jean-Claude Manini, Isabelle Rossi, Daniel Royer and Mich Tvede for valuable discussions. I thank an anonymous referee for interesting suggestions and helpful references. Research support by the Swiss National Science Foundation is gratefully acknowledged.
PY - 1996/5
Y1 - 1996/5
N2 - Based on Arrow's model of a pure exchange economy with smooth consumption externalities, this paper studies how the internalization of external effects through a network of markets between agents introduces symmetry breakings in the set of equilibria. It shows indeed how identical agents can be treated asymmetrically by complete markets. This work emphasizes that equilibrium allocations may be very sensitive to the way Coase-type rights are distributed: Journal of Economic Literature Classification Numbers: D50, D62, H23, K11.
AB - Based on Arrow's model of a pure exchange economy with smooth consumption externalities, this paper studies how the internalization of external effects through a network of markets between agents introduces symmetry breakings in the set of equilibria. It shows indeed how identical agents can be treated asymmetrically by complete markets. This work emphasizes that equilibrium allocations may be very sensitive to the way Coase-type rights are distributed: Journal of Economic Literature Classification Numbers: D50, D62, H23, K11.
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U2 - 10.1006/jeth.1996.0058
DO - 10.1006/jeth.1996.0058
M3 - Article
AN - SCOPUS:0030141192
SN - 0022-0531
VL - 69
SP - 334
EP - 366
JO - Journal of Economic Theory
JF - Journal of Economic Theory
IS - 2
ER -