Consumption Externality Agent a is endowed with Sya Agent B is endowed with SyB Smoke intensity is measured on a scale from o(no smoke)to 1 (maximum concentration
Agent A is endowed with $yA. Agent B is endowed with $yB. Smoke intensity is measured on a scale from 0 (no smoke) to 1 (maximum concentration). Consumption Externality
Consumption Externality Smoke Money and smoke are both goods for Agent A 0 A yA A
OA 1 0 Smoke yA mA Money and smoke are both goods for Agent A. Consumption Externality
Consumption Externality Smoke Money and smoke are both goods for Agent A 0 A yA A
OA 1 0 Smoke yA mA Money and smoke are both goods for Agent A. Consumption Externality
Consumption Externality Smoke Money is a good and smoke is a bad for Agent B 0 B yB B
OB 1 0 Smoke yB mB Money is a good and smoke is a bad for Agent B. Consumption Externality
Consumption Externality Money is a good and smoke Smoke is a bad for Agent B B B 00 B
OB 1 0 Smoke mB yB Money is a good and smoke is a bad for Agent B. Consumption Externality