Argues that perfect competition has a tendency to promote a general deterioration in quality. The book also contends that it is very difficult for competitive firms to behave in socially desirable ways. It ends by suggesting solutions that lie within the market system.
In this book, Professors Baumol and Oates provide a rigorous and comprehensive analysis of the economic theory of environmental policy. They present a formal, theoretical treatment of those factors influencing the quality of life.