We propose a tractable framework to introduce externalities in screening model. Agents differ both payoff-type and influence-type (ranking how beneficial their actions are for others). Applications range from pricing network goods regulating industries that create externalities. Inefficiencies arise only if the is unobservable. When dimensions unobserved, optimal allocation satisfies lexicograp...

Abstract We evaluate the impact of a price floor for alcohol introduced in Scotland 2018, using difference-in-differences strategy with England as control group. show that policy led to largest reductions units purchased among heaviest drinkers—the group who, at margin, are likely create externalities from drinking. The is well targeted heavy drinkers because they buy much greater fraction thei...

We study the problems of pricing an indivisible product to consumers who are embedded in a given social network. The goal is to maximize the revenue of the seller. We assume impatient consumers who buy the product as soon as the seller posts a price not greater than their values of the product. The product’s value for a consumer is determined by two factors: a fixed consumer-specified intrinsic...

This paper provides a unified treatment of externalities associated with fertility and human capital accumulation as they relate to pension systems. It considers as overlapping generations model in which every generation consists of high earners and low earners with the proportion of types being determined endogenously. The number of children is deterministically chosen but the children’s futur...

We analyze the effects of a domestic standard that reduces an externality associated with the consumption of the good targeted by the standard, using a model in which foreign and domestic producers compete in the domestic good market. Producers can reduce expected damage associated with the externality by incurring a cost that varies by source of origin. Despite potential protectionism, the sta...

This paper extends the previous literature on optimal redistributive taxation in the presence of externalities to a multi-externality setting. While taxes on income and on 'clean' commodities are still una ected by the externalities, which con rms previous results, I nd that the existence of more than one externality-generating commodity has important implications for the optimal Pigouvian tax ...

Credit constraints that link a private agent’s debt to market-determined prices embody a credit externality that drives a wedge between competitive and constrained socially optimal equilibria, inducing private agents to “overborrow.” The externality arises because agents fail to internalize the price effects of additional borrowing when the credit constraint binds. We quantify the effects of th...

In this paper, we formulate relay selection into a Chinese restaurant game. A secure relay selection strategy is proposed for a wireless network, where multiple source nodes send messages to their destination nodes via several relay nodes, which have different processing and transmission capabilities as well as security properties. The relay selection utilizes a learning-based algorithm for the...

When scientists choose research projects with the highest expected value an externality can appear; slight variations on existing work will be selected in preference to new lines of research that would ultimately generate more value. New research enjoys two advantages: it is riskier and hence more likely to lead to high-value follow-up projects and it can generate more follow-up projects. Less ...