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Full-Text Articles in Social and Behavioral Sciences
Interrelated Consumer Preference And Voluntary Exchange, Ted Bergstrom
Interrelated Consumer Preference And Voluntary Exchange, Ted Bergstrom
Ted C Bergstrom
This paper presents a model of interrelated preferences for pairs of individuals. It investigates the possibility of an equilibrium with voluntary transactions. It identifies the puzzling case of two people who disagree because each wants the other to have the better part and shows that if this is assumed away, then there exists a competitive equilibrium with voluntary bilateral gifts.
A Scandinavian Consensus Solution For Efficient Income Distribution Among Nonmalevolent Consumers, Ted Bergstrom
A Scandinavian Consensus Solution For Efficient Income Distribution Among Nonmalevolent Consumers, Ted Bergstrom
Ted C Bergstrom
If Persons A and B are both benevolent to C, then a gift from A to C also benefits B. Thus C's income is like a public good to A and B. What happens with lots of people whose affections are entangled? This paper shows that a "distributional Lindahl equilibrium" exists and leads to an efficient income redistribution.