How to make the metropolitan area work? Neither big government, nor laissez-faire

Laissez-faire versus Pareto∗

Consider two principles for social evaluation. The first, ‘laissez-faire’, says that mean-preserving redistribution away from laissez-faire incomes should be regarded as a social worsening. This principle captures a key aspect of liberal political philosophy. The second, weak Pareto, states that an increase in each individual’s disposable income should be regarded as a social improvement. We sh...

On the robustness of laissez-faire

This paper considers a model economy in which agents are privately informed about their type: their endowments of various goods and their preferences over these goods. While preference orderings over observable choices are allowed to be correlated with an agent’s private type, we assume that the planner/government is both uncertain about the nature of this joint distribution and unable to choos...

How to handle an industry in disruption: Intervene or laissez-faire?

An analysis of four regions in four countries suggests that the best way to mitigate disruption of the pharmaceutical industry is not to ignore or stem it but to sponsor initiatives that keep scientists engaged.

How to make the next big thing.

The Platform Economy and Natural Monopoly: regulating or laissez-faire?

The platform economy has been a hot issue all over the world, especially in china. The Chinese capital market has witnessed substantial cases of mergers and acquisitions among those platforms recent years. Three IT industry giants in China,BAT(Baidu,Alibaba,Tecent), are all developing towards gigantic system of various platforms through purchasing related small platforms or investing in some ne...