When there are three parties, it is well known that the Coase Theorem may not hold even when there are no transaction costs, due to the emptiness of the core of the corresponding cooperative game [Aivazian and Callen (1981)]. We show that the standard Coasean bargaining game involving three...

type="main" xml:id="ecpa12066-abs-0001" <p>It is well known that when there are existing distortions in related markets, partial equilibrium estimates of the welfare costs of new distortions using the standard “Harberger triangle” may be misleading (Goulder & Williams, [Goulder, L., 2003]). We...</p>

Three major policy tools govern the demand for private health insurance (PHI) in Australia: premium-related subsidies (i.e. PHI-rebate); income tax surcharges (i.e. the Medicare Levy Surcharge (MLS)); and lifetime community-rating (i.e. Lifetime Health Cover). The first two provide a system of...

Australia's carbon tax has been in place since July 2012. Following the 2013 federal election and change of government, it is likely that the tax will be abolished. This paper evaluates Australia's carbon tax experience and draws lessons for policymakers in other jurisdictions who may be...

When there are three parties, instability problems brought about by the emptiness of the core of the corresponding cooperative game may cause the Coase Theorem to fail, even when other more direct impediments to bargaining are low. We show that the standard Coasean bargaining game involving...

When market distortions already exist, producers may attempt to surpress or encourage the establishment of new distortions in hitherto undistorted markets, and may have a strong incentive to appeal to the language of second best to further their private interests. In these situations, the total...

Contests are games in which the players compete for a valuable prize by exerting effort or using resources so as to increase their probability of winning. This paper examines two player multi-item contests, a class of games in which players are faced with a decision about how much of a given...