MIT 14.04 Intermediate Microeconomic Theory, Fall 2020 - Lecture 20: Failure of Welfare Theorems

MIT 14.04 Intermediate Microeconomic Theory, Fall 2020 Instructor: Prof. Robert Townsend View the complete course: https://ocw.mit.edu/courses/14-04-intermediate-microeconomic-theory-fall-2020/ YouTube Playlist: https://www.youtube.com/watch?v=XSTSfCs74bg&list=PLUl4u3cNGP63wnrKge9vllow3Y2OOOKqF When there is pollution, missing markets, externalities in caring about the outcomes for other people (jealousy or altruism), or an infinite number of agents from overlapping generations of finite-lived agents, then the equivalence between the class of competitive equilibria with transfers and the set of Pareto optimal allocations can be broken. But likewise, the link can be restored with markets in rights and appropriate market design. License: Creative Commons BY-NC-SA More information at https://ocw.mit.edu/terms More courses at https://ocw.mit.edu Support OCW at http://ow.ly/a1If50zVRlQ We encourage constructive comments and discussion on OCW’s YouTube and other social media channels. Personal attacks, hate speech, trolling, and inappropriate comments are not allowed and may be removed. More details at https://ocw.mit.edu/comments.