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Pigouvian taxes: A strategic approach

Author

Listed:
  • José Alcalde Pérez

    (Universidad de Alicante)

  • Luis Corchón

    (Universidad de Alicante)

  • Bernardo Moreno Jiménez

    (Universidad de Alicante)

Abstract

This paper analyzes the problem of designing mechanisms to implement efficient solutions in economies with externalities. We provide two simple mechanisms implementing the Pigouvian Social Choice Correspondence in environments in which coalitions can be formed. Finally, we study economies in which agents are incompletely informed, and provide a mechanism that implements this social choice correspondence in Bayesian equilibrium.

Suggested Citation

  • José Alcalde Pérez & Luis Corchón & Bernardo Moreno Jiménez, 1996. "Pigouvian taxes: A strategic approach," Working Papers. Serie AD 1996-17, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasad:1996-17
    as

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    File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-1996-17.pdf
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