This note is a part of my Zettelkasten. What is below might not be complete or accurate. It is also likely to change often.
19th September, 2020

Market for Scarce Shared Resource

These are notes from MITxMicromasters program in Data, Economics and development policy.

When the shared resource is scarce, it becomes hard to price it. For example: water, parking

Some proposed solutions:

  • Household based allocation
    • Leads to high Allocation Efficiency because some people dont use much water and others who dont get acess to the resource.
  • Price based mechanism - higher price when resource is scarcer