组织的经济学与管理学（英文）ch03_Welfare_theorem教材教学课件.ppt

Chapter 3 Welfare theorem George Hendrikse;Figure III.1: Positioning of part II ;Figure 2.1: Scheme of thought;The general equilibrium model is based on two concepts;Two results about situations in which markets work perfectly;Benchmarks;Welfare theorem;The welfare theorem specifies the assumptions of an ideal world where all coordination and motivation problems are solved.;Assumptions (cont’d);1. Large number of consumers and producers;Reality;2. Law of one price;Reality;3. Anonymity ;Reality;Figure III.2: View of the firm in the theory of general equilibrium;Figure 3.2: The firm as a production function;Reality;5. Communication structure in the fundamental welfare theorem;The Walrasian auctioneer is at the centre;Counterexample;6. Complete contingent contracts;However, prices are very sensitive to small distortions in or a lack of information (Part VI). Complete contracts (Part III). Incomplete contracts.;7. Complete rationality;Incomplete contracts. Organisations are chosen to cope with bounded rationality and available information.;8. Price formation;Reality;9. Decentralisation;Decentralisation means that decisions are delegated to persons with the best local information, because information is dispersed. However, a bargaining foundation of the fundamental welfare theorem can be formulated.;10. Coordination;Reality;11. Complete set of markets;Reality: missing markets;;No intersection of demand and supply. Prices alone can’t/don’t give a good signal. (Concave production possibilities set in the welfare theorem.);12. Externalities;Example;Market produces too much;C;p;What is the loss of CS + PS due to the response of the firm to the negative externality?;Three solutions for the externality problem;13. Self-interest and Pareto-optimality ;Relevant group;Establishing Pareto optimality by;Freedom versus efficiency;14. All goods and services can be exchanges/alienated;15. Irrelevance;However, accounting systems / financial systems / logistics systems / marketing