We trace the developments that led to quadratic voting, from Vickrey's counterspeculation mechanism and his second-price auction through the family of Groves mechanisms and its most notable member, the Clarke mechanism, to the expected externality mechanism, the Groves-Ledyard mechanism, and the...

In the context of the example of a factory whose smoke emissions affect a near-by laundry, Coase (1960) argued for taxing the laundry as well as the factory, while Baumol (1972) argued for taxing only the factory. The literature on bilateral taxation during the past 40 years has not fully...