《法律经济学》课程PPT教学课件（法律的经济分析）经济学与法律的对话（大卫·弗里德曼）L&E 1 17

The Coordination Problem Solutions Central Decision Making Decentralized Decision Making

The Coordination Problem Solutions Central Decision Making Decentralized Decision Making

Decentralized Decision Making If individuals are rational and nobody affects anyone else If individuals are rational and all effects on others taken into account To first approximation,prices and voluntary trade do that Law is largely about dealing with the second approximation

Decentralized Decision Making •If individuals are rational and nobody affects anyone else •If individuals are rational and all effects on others taken into account • To first approximation, prices and voluntary trade do that • Law is largely about dealing with the second approximation

Market Failure Situations where individual rationality does not produce group rationality

Market Failure • Situations where individual rationality does not produce group rationality

Prisoner's Dilemma Bill and Joe jointly commit a crime,are caught.D.A.'s offer to each: If neither of you confesses,I can convict you of resisting arrest,1 year in prison. If you confess and he doesn't,I'll let you off with 3 months If he confesses and you don't,you get 3 years. If both of you confess,you get 2 years

Prisoner’s Dilemma • Bill and Joe jointly commit a crime, are caught. D.A.’s offer to each: • If neither of you confesses, I can convict you of resisting arrest, 1 year in prison. • If you confess and he doesn’t, I’ll let you off with 3 months • If he confesses and you don’t, you get 3 years. • If both of you confess, you get 2 years

Confess Don't confess Confess 2 years 3 months 2 years 3 years Don't Confess 3 years 1 year 3 months 1 year

Confess Don’t confess Confess 2 years 2 years 3 months 3 years Don’t Confess 3 years 3 months 1 year 1 year

Market Failure Prisoner's Dilemma Writ Large

Market Failure •Prisoner’s Dilemma Writ Large

Externalities ·The Problem ●Solutions ●Regulation Pigouvian Tax ·??Chapter4??

Externalities •The Problem •Solutions •Regulation •Pigouvian Tax •??? Chapter 4 ???

Regulation What Problems Does it Raise? Incentives Information

Regulation • What Problems Does it Raise? Incentives Information

Effluent Fee/Pigouvian Tax/Carbon Tax .What Problems does it Raise?

Effluent Fee/Pigouvian Tax/Carbon Tax •What Problems does it Raise?

Carbon Tax

Carbon Tax