Marketable Permits: Lessons for Theory and Practice

@article{Hahn1989MarketablePL,
  title={Marketable Permits: Lessons for Theory and Practice},
  author={Robert W. Hahn and Gordon L. Hester},
  journal={Ecology Law Quarterly},
  year={1989},
  volume={16},
  pages={361}
}
One of the central tenets of industrial organization theory is that the allocation and definition of property rights can have important implications for market performance. When ownership is not attached to a particular individual, but rather to a group of unrelated users, the problem of the "commons" arises; users of a common resource do not fully internalize the costs of resource depletion. The result is that a resource is "overused" relative to what might have occurred with individual… 

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