Category archives: Economics

Voting sincerely for public facilities location

Voting sincerely for public facilities location

Economics

By José Luis Ferreira

There are two major impossibility theorems in social choice: Arrow’s theorem (1951) : the only system to aggregate individual preferences into social preferences (e.g., a voting mechanism) that satisfies the properties of transitivity, monotonicity and independence of irrelevant alternatives for all possible individual preferences is the dictatorial system. Gibbard–Satterthwaite’ theorem (1973) : any voting system […]

The costs of going green

The costs of going green

EconomicsEnergy

By José Luis Ferreira

A tax on carbon emissions is an efficient way to make firms and consumers internalize the environmental costs due to climate change. However, there are many other aspects to consider in a transition from a fossil-fueled economy to a cleaner one. In a past article we presented the case for subsidies on research to develop […]

On scientific co-authorship (2): An economic diversion, Ronald Coase’s theory of the firm

On scientific co-authorship (2): An economic diversion, Ronald Coase’s theory of the firm

EconomicsPhilosophy of science

By Jesús Zamora Bonilla

Let me leave aside for a moment our talk about scientists and papers, and bring up a topic that, at first sight, might seem totally unconnected: Ronald Coase’s economic theory about the firm and the allocation of property rights. As in the case of the problem we mentioned in our last entry (why scientists share […]

What motivates effort?

What motivates effort?

Economics

By José Luis Ferreira

One of the topics of discussion within behavioral economics is the motivation of effort. Although the typical economic model usually assumes monetary incentives, they do not preclude the existence of other factors, like preferences for being first or psychological and economical benefits from reputation. The growing experimental literature on this area will help to determine […]