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• W2214589787 abstract "The First Theorem of Welfare Economics rests on the assumption that individuals have neither price-making nor market-making capacities. We offer a revision in which individuals have such capacities. The revision emphasizes two keys for market efficiency: (i) the need to align private rewards with social contributions called full appropriation, and (ii) the need for an assumption to counter the possibility of coordination failures in the choice of produced commodities -called noncomplementarity. We also emphasize that information about prices of unmarketed commodities involves decentralized knowledge available only to product innovators and that pecuniary extemalities are important potential sources of market failure. (JEL D51, D60, D62)" @default.
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• W2214589787 date "2016-01-01" @default.
• W2214589787 modified "2023-09-23" @default.
• W2214589787 title "Appropriation and Efficiency: A Revision of the First Theorem of Welfare Economics" @default.
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