Microeconomics: Externality
Busy Bees cartoon (11/2/2011)
Honey bees tell an interesting story of how businesses settle payments for spillover costs and benefits among them.
Honey bees tell an interesting story of how businesses settle payments for spillover costs and benefits among them.
Coasian Bargaining & Property Rights (10/5/2017)
Efficient assignment of property rights could achieve efficient adverse impact without negotiation cost and Coasian bargaining.
Efficient assignment of property rights could achieve efficient adverse impact without negotiation cost and Coasian bargaining.
Condom Economics (3/7/2007)
The externality and time horizon of costs and benefits bedevil college distribution of condoms.
The externality and time horizon of costs and benefits bedevil college distribution of condoms.
Efficient adverse impact (10/12/2007)
Adverse impact is efficient when marginal benefit to the impactor equals to marginal cost to the impactee.
Adverse impact is efficient when marginal benefit to the impactor equals to marginal cost to the impactee.
Efficient right assignment (10/12/2007)
The achievement of efficient level of adverse impact may depend on efficient right assignment in the face of high negotiation cost.
The achievement of efficient level of adverse impact may depend on efficient right assignment in the face of high negotiation cost.
External Benefit and External Cost - flash (1/21/2007)
The existence of external cost and external benefit leads to misallocation of resources.
The existence of external cost and external benefit leads to misallocation of resources.
External Benefit and External Cost - youtube (11/2/2011)
External cost and external benefit exist because some property rights have not been clearly defined and enforced. Their existence leads to misallocation of resources.
External cost and external benefit exist because some property rights have not been clearly defined and enforced. Their existence leads to misallocation of resources.
External Benefit and External Cost (transcript) (3/27/2007)
The existence of external cost and external benefit leads to misallocation of resources.
The existence of external cost and external benefit leads to misallocation of resources.
Free Riding on Preventive Health Care (8/16/2000)
Individual health insurers may be reluctant to aggressively offer smoking cessation treatment to their insured members because of high turnover of treated patients to other health insurers
Individual health insurers may be reluctant to aggressively offer smoking cessation treatment to their insured members because of high turnover of treated patients to other health insurers
Impactee has right (10/12/2007)
When the impactee has the right to zero adverse impact, zero adverse impact is usually not the end result.
When the impactee has the right to zero adverse impact, zero adverse impact is usually not the end result.
Impactor has right (10/12/2007)
The right to generate adverse impact means that the impactor does not have to compensate the impactee for harm done.
The right to generate adverse impact means that the impactor does not have to compensate the impactee for harm done.
Metered Consumption (3/7/2007)
Resource conservation depends on who pays and the time horizon of costs vs benefits.
Resource conservation depends on who pays and the time horizon of costs vs benefits.
Negotiation cost (10/12/2007)
High negotiation cost may block the achievement of efficient adverse impact.
High negotiation cost may block the achievement of efficient adverse impact.
One Road's Congestion Is Another Road's Revenue (12/21/2001)
Charging motorists for contributing to rush-hour congestion may be economists' dream of internalizing negative externality on toll roads but politicians' nightmare when competing highways are free.
Charging motorists for contributing to rush-hour congestion may be economists' dream of internalizing negative externality on toll roads but politicians' nightmare when competing highways are free.
Pollution control (6/23/2006)
Narrated lecture on cost efficient pollution control when firms have different pollution-reduction costs.
Narrated lecture on cost efficient pollution control when firms have different pollution-reduction costs.
Pollution control (transcript) (3/27/2007)
Narrated lecture on cost efficient pollution control when firms have different pollution-reduction costs.
Narrated lecture on cost efficient pollution control when firms have different pollution-reduction costs.
Property Rights and Externality (7/7/2006)
Transferable and enforceable property rights encourage investment and high-valued uses.
Transferable and enforceable property rights encourage investment and high-valued uses.
Spillovers Are Not Always Externalities (6/22/2006)
External costs or benefits exist only if property rights have not been clearly defined and/or when the negotiation or enforcement cost exceeds damage.
External costs or benefits exist only if property rights have not been clearly defined and/or when the negotiation or enforcement cost exceeds damage.
Systems Competition and Network Effects (9/26/2000)
A dominant network based on a near universal standard can internalize a great deal of system externality to the benefits of network users and can persist even in the face of technically superior competing networks.
A dominant network based on a near universal standard can internalize a great deal of system externality to the benefits of network users and can persist even in the face of technically superior competing networks.
The Annoying Neighbor (12/21/2001)
Tit-for-tat is one way to force producers of negative externalities to internalize them.
Tit-for-tat is one way to force producers of negative externalities to internalize them.
The Right to Pollute? (10/20/1999)
Pollution credits convert the atmosphere from a commons into private property. They can reduce pollution if the pollution cap is lower than the unrestricted total and lower the costs of reducing pollution if credits can be sold from low-cost avoiders and high-cost avoiders.
Pollution credits convert the atmosphere from a commons into private property. They can reduce pollution if the pollution cap is lower than the unrestricted total and lower the costs of reducing pollution if credits can be sold from low-cost avoiders and high-cost avoiders.
There Is No Free Parking (2/3/2007)
Free or subsidized parking has suffocated the development of mass transit and increased traffic congestion and air pollution.
Free or subsidized parking has suffocated the development of mass transit and increased traffic congestion and air pollution.
To Stand or Not to Stand? (10/24/2001)
Charging a time fee for using restrooms may reduce congestion by discouraging overuse.
Charging a time fee for using restrooms may reduce congestion by discouraging overuse.
Tragedy of the commons - flash (6/23/2006)
Narrated lecture on over-exploitation of commons resources due to unlimited entry.
Narrated lecture on over-exploitation of commons resources due to unlimited entry.
Tragedy of the Commons - youtube (11/2/2011)
Unlimited entry could easily lead to over-exploitation of commons resources.
Unlimited entry could easily lead to over-exploitation of commons resources.
