In this lecture, we revisit the Kaldor–Hicks efficiency perspective on markets and the three conditions that ensure that market equilibria lead to socially efficient allocations of goods and services. This allows us to discuss competitive markets, markets with information symmetry, and complete markets, and how these violations of these three market conditions are depicted with supply and demand curves. We specifically discuss these market failures as they relate to sustainability and environmental economics.
Whiteboard notes for this lecture can be found at: https://www.dropbox.com/s/tympsbtro8kcah8/LectureC6-2020-10-06-Market_Failures_in_Environmental_Realm.pdf?dl=0
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