机构:
Victoria Univ Wellington, Wellington 6015, New Zealand
Ateneo Univ, Wellington 6015, New ZealandVictoria Univ Wellington, Wellington 6015, New Zealand
Victorio, Andres G.
[1
,2
]
机构:
[1] Victoria Univ Wellington, Wellington 6015, New Zealand
The Coase theorem and the Rotten-Kid theorem are compared against each other in a simplified model of altruism and externalities. The efficiency predictions of the Coase theorem are found to be unaltered by the altruism, whereas those of the Rotten-Kid theorem are found to be applicable only to a more specialized type of social-welfare function.