Slide 45
Slide 45 text
Environmental Allocation Problem
RA? → ⇑U
⇓R
{RA, RB, RC, RD} in order of increasing R : S ranking (assuming U controlled)
{RA, RB, RC, RD} : RA → ⇑U ≡ {RA/UX, RB/UX, RC/UX, RD/UX} : RA/UX → ⇑U
{RA1, RA2, RA3, RA4,} with equivalent R : no information texture
{RA1, RA2, RA3, RA4,} : RA? → ⇑U (Environmental Allocation Problem)
Allocation Problem : “Most efficient allocation to welfare uses of resources?”
Allocation Solution : “The Efficient Market”