Howdy here!
I was wondering what people’s thoughts were on the Efficient Voter Rule as a solution to externalities within the market; it seems to have been presented fairly recently (best guess on when it first shown up would be in 2009 or so).
I’m currently reading through this article so far:
https://sci-hub.se/https://doi.org/10.3390/economies8040100
Hi pknrpe,
I couldn’t open your link unfortunately and have done some research of my own. Please correct me if I am wrong. As far as I can see Efficient Voter Rule has the precondition of rational choice. This is a theory that has to be discussed. As cultural anthropologist I think that all people are rational but not all of us use and practice rational choice theory. Then I guess that Efficient Voter Rule still clings on markets what a participatory economy does not but I would say that it is better than what we have today because it tries to involve people and their views on externalities.
Best regards
Thomas
Hi, this is a reply Robin asked me to post on his behalf:
Dear reader,
You have found an excellent article to read explaining the efficient voter rule. I am happy to be able to tell you that the annual participatory planning procedure DOES incorporate the “wisdom” explained in the article you are reading now that we have incorporated the Pollution Demand Revealing Mechanism, PDRM, into the annual planning procedure. Here are the references for you to check out.
The issue you ask about arises both with regard to providing the efficient amount of public goods and reaching the efficient level of emissions of pollutants. You can find our explanation of how and why our proposals achieve efficient results in both regards on pages 133 – 150 in chapter 7 of Democratic Economic Planning.
You should also see these two journal articles which spell things out in greater detail:
Robin Hahnel and Kristen Sheeran, “Misinterpreting the Coase Theorem,” Journal of Economic Issues, (43, 2) 2009: 215 – 237.
Robin Hahnel, “Wanted: A Pollution Damage Revealing Mechanism,” Review of Radical Political Economics (49, 2), 2017: 233-246.
I can send you files for those articles if you email me.
If you’d like the files, message me and I can give you his email address.
And here is a link to Robin’s new book Democratic Economic Planning which you might find of interest: