A great way to solve the problem of the utility monster: Just distribute a utility currency (utils) to people based on their inherent satisfaction with certain things in life. Do you like sunny days? You get 20 sunny day utils. Do you love ice cream? You get 50 ice cream utils. Do you hate luxury houses? You get an account receivable of 80 luxury house utils. After all the utils are distributed, let the market transactions commence! An example of how this would work: Jimmy is walking down the street when he sees a one man protest outside. Jimmy hates protests, as it disturbs his afternoon walk, and so he approaches the protester. Since all externalities act as public goods, they can be bought in and sold out at will. So Jimmy puts up his bid for no protests with his credit while the protester puts down his utils currency and the highest bid wins. Bye bye Coase.
Posted on: Sun, 23 Nov 2014 22:32:55 +0000
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