The Economic Journal · 1983 · 169 citations · 3 references
Social SciencesEconomicsExperimental DesignExperimental EconomicsMicroeconomicsAdverse SelectionInformation AsymmetryMarket ExperimentsMarket FailureEconomies With ExternalitiesExperimental FinanceExperimental Market MicrostructureExperimental PricingExternalities In General EquilibriumGeneral Equilibrium With ExternalitiesLaboratory MarketsPublic-goods Experiments
This paper reports on the behaviour of simple, laboratory markets which have \nan externality. Experiences with these markets provide some help in answering \ntwo broad questions. (1) Do markets with externalities behave in accordance \nwith the law of supply and demand? (2) How do the pollution tax, pollution \nstandard, and pollution licenses compare as methods for correcting the externality?
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