Although we do not have data on contracts, it is a testable empirical question whether existing renter contracts internalize the intertemporal
externality imposed by renters on future renters and the landowner.
If the presence of the steel plant will benefit other industries already located in the adjacent industrial zone--serving both the demand and supply side of the industrial products market--this positive market
externality should be considered.
As proved in Proposition 1, this assumption on the lack of heterogeneity in consumption
externality across households is innocuous in terms of existence and uniqueness of an equitable steady state as long as [[theta].
50) This complicity in injustice is just another justice-sensitive
externality of state behavior.
First, we confirm the existence of the accident
externality arising from driving in Taiwan both on the average number of kilometers driven per month per vehicle and on the total number of speeding tickets per month.
However, this classic example of a positive
externality could easily, if perhaps somewhat less naturally, be recharacterized as a negative
externality.
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.
On this latter point, Coase is once again highly critical of the "blackboard economics" approach of modern welfare economies and economists who too quickly see an
externality as a result of market failure "requiting corrective government action [that] is, in fact, often the result of government action" (Coase 1960: 28).
Ng, as we have already noted, assumed away 'bargaining cost' in his 1971 discussion, and in 1975 he elaborated on this, saying that what he had in mind in 1971 was that 'the cost of bargaining and enforcing agreements between parties to an existing
externality are negligible' (1975: 272).
Both price and cap-and-trade systems can lead to socially efficient outcomes, as in the case of a carbon tax, by internalizing the negative
externality.
Fortunately, due to the presence of the public university, with it's support reflected in the respective founds and the resulting commitment that comes with them, if any company decides to undertake a project of the network, it creates a positive
externality for all the other projects or companies involved, increasing the possibility to create the necessary critical mass.
from A to B creates a negative
externality of $50 for C.
