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.

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References in periodicals archive

The California Supreme Court did not explicitly address this type of market externality logic.

Zoning and market externalities

A justice-sensitive externality account has significant reach.

Sovereignty and the right to be left alone: subsidiarity, justice-sensitive externalities, and the proper domain of the consent requirement in international law

That is, if an act results in a negative externality, refraining from that act necessarily creates a positive externality, and vice versa.

Mirrored externalities

The emerging understanding on scale and scope of climate change problem is also supported by studies in climate economics where it has been declared a serious case of market failure and externality of uncontrolled industrial activity in the past few centuries.

Climate Change: A Paradigm Shift for Investments? A Review of Evidence under Climate Economics Research

The previous section demonstrated that city shapes were strongly correlated, not with the size of retail externalities in total, but with the size of the externality effect falling within city borders.

Shops and the city: evidence on local externalities and local government policy from big box bankruptcies

One way of alleviating the problem of externalities would be for the two separate firms to merge so that the externality is internalized and at a cost much less than if regulatory policies were instated.

The Coasean framework of the New York City watershed agreement

Pecuniary and Technological Externality, Factor Rents, and Social Costs.

The Coase Theorem, Applied to Markets and Government

The direct effect of network externality is felt when the number of users or customers for a product or service increases.

The impact of network externalities on acceptance and use of an app of peer-to-peer platform: a study with Uber users/ O impacto de externalidades de rede na aceitacao e uso em aplicativo de uma plataforma peer-to-peer: um estudo com usuarios da Uber/ El impacto de las externalidades de red en la aceptacion y el uso de una aplicacion de plataforma peer-to-peer: un estudio con usuarios de Uber

As Di Giovanni writes, the Logic embodies a "movement by which thought develops into ever more complex forms and which can be traced from within thought itself simply by pursuing its internal logic." (6) In the Philosophy of Spirit, Hegel writes that language is an internal externality, (7) and, in the Encyclopedia Logic, he writes that thought (Denken) is the (spiritual) substance of things in the world.

THE EMERGENCE OF THE CONCEPT IN G. W. F. HEGEL'S SCIENCE OF LOGIC

To illustrate this, consider a common market failure, an 'externality', and how it might apply to PIA.

Choking on the family silver