Given Quote by William Vickrey
“Firms would be given initial entitlements to gross markup on the basis of past performance. These entitlements would be transferable and a market in them would be developed.”
About This Quote
Source Paper: Economics of Market Design, 1995
Granting transferable rights to firms based on past performance creates a market for those rights, incentivizing efficiency.
In simple terms: Performance‑based rights can be traded.
Key Takeaway
Design markets that reward past success and allow flexibility.
Themes
economics
market design
incentives
Mood
analytical
strategic
Type
academic
technical
When to use this quote
- corporate finance
- energy markets
- telecommunications
- environmental permits
Key Concepts
property rights
auction theory
Questions to Reflect On
- What safeguards prevent market abuse?
- How can fairness be ensured in allocating initial rights?
A Different Perspective
Complex valuation of rights may cause speculation or inequality.
