Externality and public goods

Externality and public goods - Microeconomics for managers...

Info iconThis preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon
Microeconomics for managers PGP I
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Market power or price setting behaviour Externality (positive and negative) Public goods Information asymmetry
Background image of page 2
Quantity Price S=MC MSC MEC Q * Q 1 P * P 1
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Quantity Price S=MC MSC MEC Q * Q 1 P * P 1 S=MC+t P **
Background image of page 4
Quantity Price MC MSB MEB Q * Q 1 P * P 1 D
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Emission Cost E* C* MEC MCA C 1 C 2 E 1 E 2
Background image of page 6
Legally granted rights to use the particular property concerned. Well specified property rights may eliminate he problem with externality Coase theorem: Bargaining can achieve an efficient allocation of resources irrespective of initial assignment of property rights. Factory’s profit Fisherman’s profit Total profit No filter, no treatment plant 500 100 600 Filter, no treatment plant 300 500 800 No filter, treatment plant
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 8
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 10
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/01/2012 for the course STRATEGY Om121 taught by Professor Abhinavdhar during the Spring '12 term at Harvard.

Page1 / 10

Externality and public goods - Microeconomics for managers...

This preview shows document pages 1 - 10. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online