Welfare Economics and Social Choice Theory, 2nd Edition

The Concerns of Welfare Economics -- The Concerns of Social Choice Theory -- Practical Concerns of Welfare Economics and Social Choice Theory -- 1 Preferences and Utility -- Fundamental Assumptions -- Best Alternatives and Utility Functions -- The Formal Model of Preferences -- to Social Preferences -- Exercises -- Selected References -- 2 Barter Exchange -- Allocations -- The Edgeworth Box Diagram -- Pareto Optimal Allocations and the Core -- Algebraic Examples -- Final Notes on the Core: The Number of Coalitions -- Exercises -- Selected References -- 3 Market Exchange and Optimality -- The Two-Person, Two-Goods Model -- Competitive Equilibrium in an Exchange Economy: Formal Preliminaries -- The First Fundamental Theorem of Welfare Economics -- The Second Fundamental Theorem of Welfare Economics -- An Algebraic Example -- Exercises -- Selected References -- 4 Production and Optimality -- Optimal Production Plans -- Competitive Equilibrium Production Plans -- The First Fundamental Theorem of Welfare Economics, Production Version -- The Second Fundamental Theorem of Welfare Economics, Production Version -- Extending the Production Model, and Combining Production and Exchange -- An Algebraic Example in a Simple Production Model -- Exercises -- Selected References -- 5 Externalities -- Externalities in an Exchange Economy: An Example -- Pigouvian Taxes and Subsidies: The Exchange Example Continued -- Pigouvian Taxes and Subsidies: A Production Example -- Exercises -- Selected References -- 6 Public Goods -- The Public Goods Model -- The Samuelson Public Good Optimality Condition -- Private Financing of the Public Good and the Free Rider Problem -- The Wicksell-Lindahl Tax Scheme -- Fixed Tax Shares and Majority Voting -- The Demand-Revealing Tax Scheme -- The Groves-Ledyard Tax Scheme -- Selected References -- 7 Compensation Criteria -- Notational Preliminaries -- The Pareto Criterion -- The Kaldor Criterion -- The Scitovsky Criterion -- The Samuelson Criterion -- Exercises -- Selected References -- 8 Fairness and the Rawls Criterion -- Fairness -- The Rawls Criterion -- Exercises -- Selected References -- 9 Majority Voting -- The Majority Voting Criterion -- Majority Voting and Single-Peakedness -- Majority Voting and Single-Peakedness: The Multidimensional Case -- Exercises -- Selected References -- 10 Arrow's Impossibility Theorem -- The Model -- Requirements on the Collective Choice Rule -- Applying the Requirements -- Arrow's Impossibility Theorem -- Relaxing the Universality Requirement -- Reaction to Arrow's Impossibility Theorem -- Exercises -- Selected References -- 11 Strategic Behavior -- Examples of Strategic Behavior -- The Gibbard-Satterthwaite Impossibility Theorem -- Significance of the Gibbard-Satterthwaite Theorem -- Exercises -- Selected References -- 12 Epilog -- Author Index.