Arthur Cecil Pigou

A. W. Flux has done much for me.

Among the many who have helped me on special points, in some cases in regard to more than one edition, I would specially mention Professors Ashley, Cannon, Edgeworth, Haverfield, Pigou, and Tosig, Dr. Berry, Mr. C. R. Fay, and the late Professor Sidgwick.

End of the Preface to the 8th Edition Principles of Economics, Book 1, by Alfred Marshall

CHAPTER I.

A. W. Flux has done much for me.

Among the many who have helped me on special points, in some cases in regard to more than one edition, I would specially mention Professors Ashley, Cannon, Edgeworth, Haverfield, Pigou, and Tosig, Dr. Berry, Mr. C. R. Fay, and the late Professor Sidgwick.

End of the Preface to the 8th Edition Principles of Economics, Book 1, by Alfred Marshall

CHAPTER I.

And it basically birthed a new kind of economics.

It was the market solution to the welfare economics problems that Pigou and so on had highlighted.

So, you know, there were people after Smith, most notably Pigou, who had talked about how there's this divergence between private costs and social costs.

We need to figure out a way to make them converge.

And Pigou had suggested a tax.

It is literally named after him.

It's called a Pigoubian tax, which will make that convergence happen.

Other people suggested regulation.