and a rich set of externalities that are responsible for possible wedges between the equilibrium and the efficient … acquisition of information. First, we relate the (in)efficiency in the acquisition of information to the (in)efficiency in the use … of information and explain why efficiency in the use does not guarantee efficiency in the acquisition. Next, we show how …

This paper analyzes equlibrium and welfare for a tractable class of economies (games) with externalities, strategic … efficiency benchmark designed to address whether the equilibrium use of information is optimal from a social perspective; the … few applications, including production externalities, beauty contests, business cycles, and large Cournot and Bertrand …

and a rich set of externalities that are responsible for possible wedges between the equilibrium and the efficient … acquisition of information. First, we relate the (in)efficiency in the acquisition of information to the (in)efficiency in the use … of information and explain why efficiency in the use does not guarantee efficiency in the acquisition. Next, we show how …

spillovers (positive externalities) and functions more broadly as an institution that sustains a spillover-rich cultural … focuses on (i) the economics of speech externalities and (ii) the functional role of the First Amendment in constraining the … government's ability to force or enable actors to internalize externalities associated with their speech. When viewed from an …

large body of research demonstrates the power of “reciprocity” for inducing cooperation: When others know that you have … they think others are also cooperating; and people can develop habits of cooperation that shape their default inclinations …

and technical externalities but free-ride on the transfer system. Efficiency can be achieved by introducing a second … externalities in the form of inter-regional capital tax competition and technical externalities in the form of inter …-regional spillovers. The federal government aims to correct for these inefficiencies using a transfer system. If the regional governments …