Within a general equilibrium model, this paper identifies a novel animal welfare externality that occurs if the private animal friendliness in a market economy falls short of the social animal friendliness used by the social planner when determining the efficient allocation. The animal welfare...

Within a general equilibrium model, this paper identifies a novel animal welfare externality that occurs if the private animal friendliness in a market economy falls short of the social animal friendliness used by the social planner when determining the efficient allocation. The animal welfare...

Informational and reputational cascades often arise in the presence of four factors: (1) preference falsification; (2) diverse thresholds; (3) social interactions; and (4) group polarization. In the context of animal welfare, cascades have often occurred, and more consequential ones are...