ABSTRACT
We have observed in several occasions that the presence of an externality implies sub-optimality and therefore inefficiency of the market equilibrium.
In order to determine the exact purport of this assertion in the context o f the ULM, the first part of this Chapter provides a critical evaluation o f the differences o f the decentralized and centralized dynamics obtained in the preceding Chapters of the book. The comparison concerns both the BGP and the transitional dynamics.
