This paper shows that the (New)2 Welfare Economics provides interesting new ways of classifying externalities in terms of the complexity of messages required to equate equilibria and optima; and in which, at the end, it is shown that the study of externalities provides useful new insights into the (New)2 Welfare Economics by showing problems with the definition of satisfactory informationally decentralized resource allocation mechanisms.
- Pareto-satisfactory mechanism
- informational decentralization
ASJC Scopus subject areas
- Sociology and Political Science
- Social Sciences(all)
- Statistics, Probability and Uncertainty