Freebairn, John W.; Quiggin, John C. - In: Australian Journal of Agricultural and Resource Economics 50 (2006) 3
security right for the residual supply. The third is a system of entitlements specified as state-contingent claims. With zero … transaction costs, all systems are efficient. In the realistic situation where transaction costs matter, the system based on state-contingent … claims is globally optimal, and the system with high-security and lower security entitlements is preferable to the system …