In this paper we investigate environmental regulation by taxes and quotas in the context of a monopolistically competitive industry. Firstly, we find the combination of a quota and a tax supporting the first best solution. Secondly, we explain why the allocative equivalence between the two...

Genetically modified pollen drifting onto the field of a neighboring farm may cause substantial harm. If the bystanding farmer is growing non-genetically modified crops, she may suffer a pecuniary loss due to genetic pollution. If the pollen is patented, the patentee may also claim harm stemming...

This paper examines the welfare implications of different libel law standards as applied to newspapers in publishing stories. Our work extends the current literature by permitting private and public incentives to deviate, giving rise to an agency problem, and by formulating a two-stage decision...

In this paper, I relax one of the common assumptions made in standard school choice problems by allowing students to rank not just schools, but school-cohort sized pairs. The intuition for this extension is the observation that a school at maximum capacity is not the same object, from a...

This paper studies the efficiency of competitive equilibria in environments with a moral hazard problem and unobserved states, both with retrading in ex post spot markets. The interaction between private information problems and the possibility of retrade creates an externality, unless...

The European Commission mandated the consulting firm CE Delft to develop a framework for the internalisation of external costs and to devise a number of potential internalisation scenarios for further analysis. The results of their preliminary research are published in a CE discussion paper, and...

Global environmental problems are often assumed to imply extensive inefficiencies since there is no global authority corresponding to the government at a national level. This paper shows, on the contrary, that rich countries in a free unregulated market may still undertake globally efficient...