COASE, COMPETITION, AND COMPENSATION

Authors
VARIAN HR
Citation
Hr. Varian, COASE, COMPETITION, AND COMPENSATION, Japan and the world economy, 7(1), 1995, pp. 13-27
Citations number
20
Categorie Soggetti
Economics
Journal title
Japan and the world economy → ACNP
ISSN journal
09221425
Volume
7
Issue
1
Year of publication
1995
Pages
13 - 27
Database
ISI
SICI code
0922-1425(1995)7:1<13:CCAC>2.0.ZU;2-H
Abstract
I show that the Pigovian solution to a simple externalities problem an d a particular Coasian solution can be viewed as competitive equilibri a from different initial endowments. I also describe the ''compensatio n mechanism,'' a mechanism that implements either the Coasian or Pigov ian solution as the outcome of an economically natural bargaining game .