Dynamic economic optimization: Group optimality and individual rationality

David W.K. Yeung, Leon A. Petrosyan

Результат исследований: Публикации в книгах, отчётах, сборниках, трудах конференцийглава/разделнаучнаярецензирование

Аннотация

The most appealing characteristic of perfectly competitive markets is that individually rational behaviors bring about group (Pareto) optimality in economic resource allocation. However, the market fails to provide an effective mechanism for optimal resource use because of the prevalence of imperfect market structure, externalities, imperfect information, and public goods in the current global economy. As a result, though the market is one of the most effective instruments in conducting economic activities, it fails to guarantee its efficiency under the current arrangement. The noncooperative outcomes characterized in Chap. 2 vividly demonstrate that Pareto optimality could not be achieved by markets. Removing market suboptimality is not just a task of achieving a better alternative, but sometimes it can be an absolute necessity. For instance, efforts to alleviate the worldwide financial tsunami and catastrophe-bound industrial pollution are currently pressing issues.

Язык оригиналаанглийский
Название основной публикацииStatic and Dynamic Game Theory
Подзаголовок основной публикацииFoundations and Applications
ИздательBirkhäuser Verlag AG
Страницы47-76
Число страниц30
Издание9780817682613
DOI
СостояниеОпубликовано - 1 янв 2012

Серия публикаций

НазваниеStatic and Dynamic Game Theory: Foundations and Applications
Номер9780817682613
ISSN (печатное издание)2363-8516
ISSN (электронное издание)2363-8524

Предметные области Scopus

  • Статистика, теория вероятности и теория неопределенности
  • Теория вероятности и статистика
  • Прикладная математика

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