, we examine the direction of the effects. Whereas indirect effects induce players to internalize externalities they impose …

investigate the incentives to expend effort for a prize that produces consumption externalities and consider alternative … regulatory policies. We find relatively more global consumption externalities will increase (decrease) rent seeking when con …- sumption externalities are negative (positive). We show how introducing Pigouvian taxation (possibly with revenue transfer) and …

How agents assess the (in-)tangible externalities that others might impose on them can strongly influence strategic … externalities, are all subject to asymmetric information; utility is quasi-linear and transferable. An allocation rule will be …-balanced transfers if and only if it maximizes the sum of private payoffs exclusive of externalities. The corresponding mechanism is …

When agents face coordination problems their choices often impose externalities on third parties. We investigate … whether such externalities can affect equilibrium selection in a series of one-shot coordination games varying the size and … the sign of the externality. We find that third-party externalities have a limited effect on decisions. A large majority …