Professor Matthew G. Nagler of the Department of Economics and Business and City College alumnus Fatjon Kaja, now a Lecturer in Law and Economics at the University of Amsterdam, have conducted a study exploring how altruism can enhance market efficiency, particularly in addressing climate change.
They discovered that altruistic behavior helps bridge the gap between what people are willing to pay and what they’re willing to accept in transactions, a concept they term “altruistic arbitrage.” This approach could make markets more effective in promoting public goods like environmental protection. The researchers suggest auctioning special market maker licenses as a new method to implement cap-and-trade systems, potentially offering a fresh strategy to mitigate long-term climate impacts. You can Read the full article here.
