Externality

(redirected from Positive externalities)
Also found in: Dictionary, Thesaurus, Wikipedia.

Externality

The cost or benefits of a transaction to parties who do not directly participate in it. Externality can be either positive or negative. For example, a merger can lead to higher share prices and bonuses for employees, benefiting shareholders and employees at the two companies merging, This can create wealth and positively impact a community. On the other hand, the merger can drive a competitor out of business, which results in layoffs and reduced wealth, which can hurt a community. Externality is also called spillover or the neighborhood effect. See also: External benefit, External cost.
References in periodicals archive ?
As illustrated in Figure 2(a), externality analysis is generally used to ascertain whether a party should subsidize or bolster production of an underproduced good with positive externalities, and charge or diminish the production of a good with negative externalities.
In contrast, we could describe positive externalities as benefits that an actor's decisions confer on third parties--benefits that, again, the actor is unlikely to account for in his decision-making, as he does not capture those benefits for himself.
Public Private Interplay for Next Generation Access Networks: Lessons and Warnings from Japan's Broadband Success"), who discusses the characteristics of Japan broadband buildouts by highlighting its main challenges and putting the attention on factors that could potentially reduce the positive externalities of a European fast-tracking broadband deployment.
In fact, Korinek verges on such an idea when he writes: "If a parent company injects additional liquidity into its emerging market subsidiary during crises, then the resulting capital inflows entail positive externalities that would call for a subsidy, since they raise aggregate demand and mitigate financial amplification" (2010b, 33 n.
More specifically, does it only concern the internalization of positive externalities or does it also internalize negative externalities, acting as a filter, a censor of media information?
58) In the case of innovation, positive externalities are
produce positive externalities would be as effective as, or better than,
Class action lawsuits, although often maligned as frivolous and socially wasteful, can have positive externalities by curbing aggressive reporting behavior of peer firms," the paper by Dr.
The drivers are many and include the positive externalities of regional turmoil, rising oil prices, a more mature business and financial leadership, and the empowering recognition that the UAE did indeed survive the blows of an unprecedented international financial crisis.
Subsidies for homeownership are often justified by economists because of the positive externalities that allegedly result: local physical amenities and higher civic involvement.
There is a direct effect whereby production by an agent creates positive externalities on the production decision of other agents: More producers make trade easier.

Full browser ?