It is known that when people generate externalities, a birth also generates an externality and efficiency requires a Pigou tax/subsidy on having children. The size of the externality from a birth is important for studying policy. We calculate the size of this “population externality” in a specific case: we consider a maintained hypothesis that greenhouse gas emissions are a serious problem and ...

For many high-tech and Internet-related products, utility to consumers depends in part on the size of the user base, a phenomenon called network externality. A firm with a portfolio of these and other products – that are often asymmetric in their degree of network externality or marginal cost – may have to look beyond the traditional strategies of pure components, pure bundling and mixed bundli...

Standard lessons from economics tell us that an externality creates inefficiency, and that this inefficiency can be removed by internalizing the externality. This papers considers how successfully these lessons can be extended to intergenerational externalities such as emissions of greenhouse gas. For intergenerational externalities, the standard lessons involve comparisons between states whose...

I study a noncooperative multilateral bargaining game of coalition formation, based on underlying TU games in partition form, in which coalitions are allowed to renegotiate agreements. Special attention is devoted to the strategic considerations induced by the possibility of renegotiation and its consequences for the efficiency of bargaining. I deÞne a class of games, relative positive and rela...

In this paper we analyze the spatial dynamics of a class of systems in which many agents continually reassess decisions of where to locate in a given region. Each agent gives rise to an externality whose impact diffuses to other agents. Thus every agent experiences a composite of externalities emitted by other agents. We term this composite a spatial externality. On the one hand, the level of t...

Purpose – The purpose of this paper is to investigate different effects of three network externality factors, i.e. local network size, network strength, and total network size, on online messenger, online community, chat room and e-mail services. Design/methodology/approach – In the paper hypotheses are tested with a regression model using a survey data collected from 107 MBA students at a busi...

The net effects of switching from consumption taxation to inflation taxation on resource allocation and welfare crucially depend on production externalities. With elastic labor supply, raising inflation taxation decreases leisure, but increases the levels of real consumption, capital, and output. Moreover, this tax switch has two opposing effects on the level of real money balances: A positive ...