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Unformatted text preview: assuming all other variables are the same Both stores will stay open Why will they stay open 24 hours? Could a local law solve their problem? Chapter 11: Externalities and Property Rights Slide 41 Positional Externalities Positional Arms Race z A series of mutually offsetting investments in performance enhancement that is stimulated by a positional externality? Positional Arms Control Agreements z An agreement in which contestants attempt to limit mutually offsetting investments in performance enhancements Chapter 11: Externalities and Property Rights Slide 42 Positional Externalities Positional Arms Control Agreements z Campaign spending limits z School uniforms Social Norms as Positional Arms Control Agreements z Norms against excessive vanity...
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- Spring '08