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Inefficient Clauses Or Consumer Choices? Lessons From Cognitive Psycology, Enrico Baffi
Inefficient Clauses Or Consumer Choices? Lessons From Cognitive Psycology, Enrico Baffi
enrico baffi
This paper is an attempt to highlight how the clauses that are traditionally considered to be inefficient may actually be wanted by consumers. This anomaly has its origin in the fact that each individual builds a mental budget by dividing up the money he has available among the needs he intends to satisfy. According to consumers’ reasoning, money is not fungible, in the sense that amounts cannot be transferred from one expenditure item to another. Consumers that behave in this way may sometimes find that they have finished the amount they budgeted for an item while wanting to buy some …
Coase V. Pigou: A Still Difficult Debate, Enrico Baffi
Coase V. Pigou: A Still Difficult Debate, Enrico Baffi
enrico baffi
This paper examines the positions of Coase and Pigou about the problem of the externalities. From the reading of their most two important works it appears that Coase has a more relevant preference for a evaluation of efficiency at the total, while Pigou, with some exception, is convinced that is possible to reach marginal efficiency through taxes or responsibility. It’s interesting that Coase, who has elaborated the famous theorem, is convinced that is not possible to reach the efficiency at the margin every time and that sometimes is necessary a valuation at the total, that tells us which solution is …
Contract Clauses As Public Goods: A New Way Of Understanding Inefficient Clauses, Enrico Baffi
Contract Clauses As Public Goods: A New Way Of Understanding Inefficient Clauses, Enrico Baffi
enrico baffi
he aim of this work is to show how it is possible to identify market failures other than those traditionally identified by lawyers and law and economics scholars to justify the mandatory provisions of contracts between professionals and consumers and the equally mandatory provisions governing the abuse of economic dependency. This is a new approach that can be extended to other provisions and appears to rest on fairly solid microeconomic foundations. There is no doubt, however, that many criticisms can be leveled against it. Very briefly, I shall argue that the production of clauses characterized by being rather vague, indeterminate …
Understanding "The Problem Of Social Cost", Enrico Baffi
Understanding "The Problem Of Social Cost", Enrico Baffi
enrico baffi
This paper examines the positions of Coase and Pigou in regard to the problem of external effects (externalities). Assessing their two most important works, it appears that Coase has a more relevant preference for an evaluation of total efficiency, while Pigou, with some exceptions, is convinced that it is almost always socially desirable to reach marginal efficiency through taxes or liability. It is interesting that the economist of Chicago, who has elaborated on the renowned theorem, thinks that is not desirable to reach efficiency at the margin every time, and that it is often preferable to evaluate the total, which …