微观经济学讲义PPT11.pptVIP

Since the $200 benefit is $50 greater than the $150 cost per month, the girls will benefit $50 per month if they chose to room together. Considering that, the girls will likely live together. It may seem strange that Betty would agree to this arrangement, as she will be paying $300 per month and bearing the extra $150 cost of Ann constantly using the phone, which would be $50 more than if she lived by herself for $400. We must be careful, however, of our assumptions. In this instance we are assuming that Betty and Ann will be splitting rent equally. This is not necessarily true. * * Laws Can Change the Outcome Suppose the law makes polluters liable for the cost of cleaning up their pollution Polluters get lower incomes Non-polluters get higher incomes With Filter Without Filter Abercrombies Gains $100 / day $150 / day Fitchs Gains $100 / day $70 / day Total Gains $200 / day $220 / day Shared Living Ann and Betty are evaluating housing options 2-bedroom apartment for $600 per month OR 2 1-bedroom apartments for $400 per month each If the costs were the same, Ann and Betty would be indifferent between the two arrangements The externality here is Anns telephone usage is high She would pay up to $250 per month to be able to use the phone whenever she wants Betty would pay up to $150 per month to get better phone access No second phone line is possible Benefits and Costs of Shared Living Total Cost of Separate Apartments Total Cost of Shared Apartment Rent Savings from Sharing $800 per month $600 per month $200 per month Live together if the benefits exceed the costs Problem Anns Cost of Solving the Problem Bettys Cost of Solving the Problem Least-Cost Solution Anns phone usage Pay Ann $250 to decrease usage Pay Betty $150 to tolerate Ann Ann pays Betty $150 per month Net Benefit of Shared Living $200 per month $150 per month $50 per month Ann and Betty will live together Rent Savings Cost of Phone Accommodation Gain in Surplus Dividing the Rent Betty would spend $