This course explores three basic principles when considering natural resource management:
– The principles of justice
– Transaction costs
– The problem of aggregating social preferences, the so-called Arrow impossibility

When looking at different societies and cultures around the world, it is interesting how ubiquitous the principles of justice are. It is part of our human nature to think about equality, and consider fairness as something that we do naturally.

However, when you start to consider transaction costs and the problems of aggregating social preferences, you soon realise that, in practical terms, equality is hard to achieve. Equality in aggregating social preferences leads to perverse or impossible outcomes. Moreover, if there is equality of decision making for everybody, then the transaction costs are very high.

Intrigued? Then sign up for this short course to find out more.