Measures of health status, such as e.g. the QALY (Quality Adjusted Life Years) measure, have been proposed as a tool in the economic assessment of new medical technologies, and its possible foundations in individual utility theory have been discussed in the literature. However, the problems of...

An economy with two dates is considered, one state at the first date and a finite number of states at the last date. Shareholders determine production plans by voting - one share, one vote - and at <InlineEquation ID="Equ1"> <EquationSource Format="TEX">$\rho$</EquationSource> </InlineEquation>-majority stable stock market equilibria, alternative production plans are supported by at...</equationsource></inlineequation>

We study internalization of production externalities in perfectly competitive markets where production plans are decided by majority voting. Since shareholders want firms to maximize dividends of portfolios rather than profits, they are interested in some internalization. Two governances, namely...