IDEAS home Printed from https://ideas.repec.org/p/sef/csefwp/649.html
   My bibliography  Save this paper

A Measure of Social Loss for Production Economies with Externalities

Author

Abstract

In this paper we consider a production economy and adopt a cooperative approach to equilibrium analysis which allows each individual to cooperate with others and to form a coalition whose members have access to the available technologies. Our definition of the core requires a blocking coalition to take account of the consequences of its blocking for the production of the counter-coalition. Following Montesano (2002), we introduce a measure of social loss with respect to the core of the economy which characterizes the corresponding core allocations. Our characterization holds in the presence of consumption externalities and an optimistic attitude of coalition agents with respect to the behavior of outsiders.

Suggested Citation

  • Maria Gabriella Graziano & Vincenzo Platino, 2022. "A Measure of Social Loss for Production Economies with Externalities," CSEF Working Papers 649, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    • Handle: RePEc:sef:csefwp:649
    as

    Download full text from publisher

    File URL: https://www.csef.it/WP/wp649.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    production economy; core; social loss; externalities.;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sef:csefwp:649. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Maria Carannante (email available below). General contact details of provider: https://edirc.repec.org/data/cssalit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.