Roemer, John E. - Cowles Foundation for Research in Economics, Yale University - 2012
Walrasian equilibrium). I here postulate a cooperative kind of optimizing behavior, called Kantian. It is shown that in simple … positive externalities (such as a social ethos reflected in individuals’ preferences), Kantian equilibria dominate Nash …-Walras equilibria in terms of efficiency. While economists schooled in Nash equilibrium may view the Kantian behavior as utopian, there …