It is easier to define the conditions under which a common resource is used efficiently than to

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It is easier to define the conditions under which a common resource is used efficiently than to deliver those conditions. To use a common resource efficiently, it is necessary to design an incentive mechanism that confronts the users of the resource with the marginal social consequences of their actions. The same principles apply to common resources as those that you met in Chapter 10 when you studied the external cost of pollution.

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Foundations Of Microeconomics

ISBN: 9780134491981

8th Edition

Authors: Robin Bade, Michael Parkin

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