The second mechanism has however clear welfare implications since it is linked to the existence of financially constrained individuals who cannot implement their optimal decisions like, for instance, those concerning the optimal investment in either their own or their children's education.
Finally: (i) the costs of implementing optimal green network design decisions could be misleading if inventory planning is neglected, (ii) greening of supply chains could become expensive, (iii) current legislative CO2 ton prices hardly influence logistics networks.
But perhaps with the input of researchers and other technology experts, the government could be better aware of what's going on in the space and change how it forms and implements its policy in order to produce the optimal decisions.
Under a replacement system, a simple limited warranty implements the user's optimal decision rule so that no losses occur due to unobservability of the user's decision.
The latter paper focuses on structural remedies in merger control, which are not needed to implement the preferred market structure with forward looking authorities but they are necessary for optimal decisions with myopic ones.
Decision analysis, also called statistical decision theory, involves procedures for choosing optimal decisions in the face of uncertainty.
Yet, both cases can constitute optimal decisions depending on constraints.
Even if consumers make privately optimal decisions, energy-saving technology may diffuse more slowly than the socially optimal rate, because of negative externalities.
Up to a willingness-to-pay of about NZ$17,000, no HPV vaccination is the optimal decision, then girls-only as currently implemented in New Zealand up to NZ$33,000, and from a willingness-to-pay of NZ$33,000 to NZ$230,000 an intensified girls-only program is optimal.
Note that if several countries with different corporate income tax rates are implemented in a model, differences in tax rates and methods for eliminating international double taxation can affect optimal decision making (e.g., Martini and Niemann 2015).
