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Pigouvian Taxes: A Strategic Approach

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1999-04
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Blackwell
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This paper analyzes the problem of designing mechanisms to implement efficient solutions in economies with externalities. We provide two simple mechanisms implementing the Pigouvian Social Choice Correspondence in environments in which coalitions can or cannot be formed.
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Journal of Public Economic Theory, April 1999, vol. 1, nº 2, p. 271-281