The Permissible and the Forbidden. / Richter, Michael; Rubinstein, Ariel.

In: Journal of Economic Theory, Vol. 188, 105042, 07.2020, p. 1-20.

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Abstract

In many economic situations, neither prices nor authority rules. Rather, individual behavior is governed by social norms that specify what is allowed (socially acceptable) and what is forbidden (socially unacceptable). These norms can emerge in a decentralized way and can serve as a method to bring order to economic situations. The key component of our solution concept is a uniform permissible set which plays a role parallel to that of a price system in competitive equilibrium. The concept is analysed and applied to a variety of economic and social settings.
Original languageEnglish
Article number105042
Pages (from-to)1-20
Number of pages20
JournalJournal of Economic Theory
Volume188
Early online date8 Apr 2020
DOIs
Publication statusE-pub ahead of print - 8 Apr 2020

Research outputs

This open access research output is licenced under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.

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