Baliga, Sandeep; Maskin, Eric - In: Handbook of environmental economics : volume 1, …, (pp. 305-324). 2003
We argue that when externalities such as pollution are nonexcludable, agents must be compelled to participate in a “mechanism” to ensure a Pareto-efficient outcome. We survey some of the main findings of the mechanism-design (implementation-theory) literature – such as the Nash...