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| | Externality - Wikipedia, the free encyclopedia |
 | | An externality occurs in economics therefore when a decision causes costs or benefits to stakeholders other than the person making the decision, often, though not necessarily, from the use of common goods (for example, a decision which results in pollution of the atmosphere would involve an externality). | | | From the perspective of anybody affected by the externality, it is either a negative factor in their lives, as with obnoxious smell or pollution or a boon, as with the other's pretty clothes. | | | The value of the effects of the externality are likely not something that can be easily calculated in a technocratic way by economists or social planners, since they reflect the ethical views and preferences of the entire population. |
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http://en.wikipedia.org/wiki/Externalities
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| | Externality: A Glossary of Political Economy Terms - Dr. Paul M. Johnson |
| | An "external diseconomy," "external cost" or "negative externality" results when part of the cost of producing a good or service is born by a firm or household other than the producer or purchaser. | | | Goods involving a positive externality will be "underproduced" from the point of view of society as a whole, while goods involving a negative externality will be "overproduced" from the point of view of society as a whole. | | | On the other hand, another neighbor who is a grade-A slob and lets the external appearance of his house run down creates a "negative externality" by depressing the attractiveness and thus the market value of the whole neighborhood. |
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http://www.auburn.edu/~johnspm/gloss/externality
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| | Introduction to Environmental Externality Costs |
| | Many analysts have attempted to quantify societal costs of pollution and other externalities associated with fossil fuel combustion, and some regulatory bodies have even attempted to crudely incorporate externality costs into investment decisions (Cohen et al. | | | Unfortunately, estimates of externality costs are often based on quite different assumptions, making comparisons difficult. | | | Pollution represents an external cost because damages associated with it are borne by society as a whole and are not reflected in market transactions. |
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http://enduse.lbl.gov/Info/Externalities-abstract.html
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| | Externalities |
| | An externality occurs when an economic agent’s consumption or production activities confer a benefit or impose a cost on other actors, and this benefit is conferred or this cost is imposed outside of a market. | | | A provision externality is a dynamic externality, and it is that together our animals impose a cost on the future provision of the good produced in the commons, that is we can cause environmental damage through overgrazing. | | | In the presence of an externality, the harmed party is theoretically willing to pay the harming party to reduce the activity generating the externality, but no market exists for them to conduct such an exchange. |
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http://faculty.maxwell.syr.edu/jomcpeak/lecture12.htm
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| | Public Goods and Externalities, by Tyler Cowen: The Concise Encyclopedia of Economics: Library of Economics and Liberty |
| | (Note that the free-rider problem and positive externalities are two sides of the same coin.) A negative externality arises when one person's actions harm another. | | | Externalities occur when one person's actions affect another person's well-being and the relevant costs and benefits are not reflected in market prices. | | | If the research and development activities of one firm benefit other firms in the same industry, these firms may pool their resources and agree to a joint project (antitrust regulations permitting). |
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http://www.econlib.org/library/Enc/PublicGoodsandExternalities.html
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| | Negative Externalities [Virtual Learning Arcade] |
| | The externality is created because the marginal private benefit (individual's demand curve) is greater than the marginal social benefit (society's demand curve). | | | This implies that a negative externality occurs when the social cost is greater than the private cost. | | | The policy of reducing / removing the externality would need to shift the private costs/ benefits towards the social costs/ benefits. |
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http://www.bized.ac.uk/virtual/vla/theories/negative_externalities.htm
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| | Knowledge Problem: Externality Accounting |
| | For a second challenge, pick some other public policy commonly defended on externality grounds, and try to list the externalities with the wrong sign--the ones that are an argument for subsidizing what we now tax, or taxing what we now subsidize. | | | In that case, the externality is not Pareto-relevant, if I pay her she won't plant more plants, and my payment to her does not change the outcome, it just redistributes resources from me to her. | | | The "externality" can be sufficiently small that at the margin, if it were internalized, it wouldn't change the outcome. |
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http://www.knowledgeproblem.com/archives/001497.html
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| | Applications of Environmental Valuation for Determining Externality Costs |
| | If the plant was expected to produce 10 000 ton of SO /year, and the externality adder set by the state was $2000/ton, then $20 million/year of "environmental externality costs" had to be included in the investment analysis to determine which technology was most desirable. | | | It could be seen as a minimum or lower bound estimate of the air pollution externality since it does not include airborne toxic substances or discharges to land and water. | | | Of this, the majority of the externality ($311 000 out of $339 000 or 92%) comes directly from the production of electricity, and the remainder of the supply chain is not so important. |
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http://pubs.acs.org/cgi-bin/jtextd?esthag/34/8/html/es9907313.html
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| | jep.html |
| | For example, while economists were writing of the positive externality brought to apple growers by the pollination activities of bees, beekeepers were internalizing this activity (and consequently invalidating the arguments of economists) by contracting with owners of apple orchards. | | | For inframarginal externality, the marginal utility of the external activity is zero. | | | For a negative indirect network externality, the analogy is obvious: if a group of breakfast-eaters joins the network of orange juice drinkers, their increased demand raises the price of orange juice concentrate, and thus most commonly effect a transfer of wealth from their fellow network members to the network of orange growers. |
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http://www.utdallas.edu/~liebowit/jep.html
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| | ch18.doc |
| | An externality is a cost or benefit that arises from production and falls on someone other than the producer, or a cost or benefit that arises from consumption and falls on someone other than the consumer. | | | Marginal external cost is the cost of producing one more unit of a good or service that falls on people other than the producer. | | | An external cost of production is a cost that is not borne by the producer but is borne by others. |
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http://staffwww.fullcoll.edu/aturner/ch18.doc
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| | SSRN-The Externality of Victim Care by Alan Meese |
| | Moreover, recognition of this externality may actually bolster the positive economic theory by, for instance, explaining the absence of a contributory negligence defense to torts premised on strict liability. | | | The failure previously to identify the externality of victim care may reflect undue reliance on the farmer-railroad exemplar as a vehicle for examining the effects of various liability rules. | | | In particular, the article demonstrates that neither negligence nor strict liability with a defense of contributory negligence will cause injurers to internalize the externality of victim care. |
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http://papers.ssrn.com/sol3/papers.cfm?abstract_id=237992
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| | 2. THE FUNDAMENTAL EXTERNALITY OF OCEAN RANCHING |
| | One initially proposed by Pigou (1912) is to counteract the externality by imposing corrective taxes or subsidies. | | | Examples are the harvesting externality where outside fishermen catch the ranched fish and environmental externalities on the shoreline where the ocean ranching facilities operate. | | | It is first of all important to realize that the impact of the fundamental externality of ocean ranching ¾ the ecological externality ¾ may not be of a gradual nature. |
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http://www.fao.org/DOCREP/005/Y1805E/y1805e08.htm
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| | Economics and Liberty: Workers Externality Victims? Just Say No To Externality Abuse |
| | Efforts to argue that the government policy is correcting an externality is turning the entire concept of efficiency upside down. | | | The Wal-Mart case cannot be a source of externality market failure because the interdependence in question occurs through the market process. | | | Of course, this is bad enough, but the situation is seen to be much worse when it is realized that such abuses of the externality concept often mask the true source of inefficiency which is government failure. |
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http://economicsandliberty.blogspot.com/2005/05/workers-externality-victims-just-say.html
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| | Classroom Expernomics: Spring 1996 |
| | The other major way for markets to mess up is if the externality is "public"--not just between two individuals as in this nice little example, but between two large groups of individuals who cannot be presumed to cooperate--even with members of their own side--to express their true preferences, costs, or benefits. | | | Their total and marginal values over the externality are as follows. | | | This would involve supply and demand "crossing twice." There are many real externality examples when this sort of non-convexity is a problem, so that any market has difficulty in finding the best solution. |
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http://www.marietta.edu/~delemeeg/expernom/s96.html
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| | Tufte's Economics Classes Blog: Externality |
| | This is where the government comes into play it is there basic goal to have companies internalize externality costs. | | | The article on Externality, is talking about the two different types of externalities which are positive and negative. | | | A positive externality is something that actually benefits the society as a whole; an example of this would be environmental cleanup. |
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http://econtufte.blogspot.com/2005/03/externality.html
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| | Network effect - Wikipedia, the free encyclopedia |
| | This type of side-effect in a transaction is known as an externality in economics, and externalities arising from network effects are known as network externalities. | | | One consequence of a network effect is that the purchase of a good by one individual indirectly benefits others who own the good - for example by purchasing a telephone a person makes other telephones more useful. | | | However, network effects need not lead to market dominance by one firm, when there are standards which allow multiple firms to interoperate, thus allowing the network externalities to benefit the entire market. |
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http://en.wikipedia.org/wiki/Network_externality
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| | Externality - Wikipedia, the free encyclopedia |
| | The value of the effects of the externality are likely not something that can be easily calculated in a technocratic way by economists or social planners, since they reflect the ethical views and preferences of the entire population. | | | From the perspective of anybody affected by the externality, it is either a negative factor in their lives (as with obnoxious smell or pollution) or a boon (as with the other's pretty clothes). | | | The marginal private cost is less than the marginal social or public cost by the amount of the external cost, i.e., the cost of the smoking stacks and water pollution. |
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http://en.wikipedia.org/wiki/Externality
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| | Externality - Wikipedia, the free encyclopedia |
| | The value of the effects of the externality are likely not something that can be easily calculated in a technocratic way by economists or social planners, since they reflect the ethical views and preferences of the entire population. | | | From the perspective of anybody affected by the externality, it is either a negative factor in their lives (as with obnoxious smell or pollution) or a boon (as with the other's pretty clothes). | | | The marginal private cost is less than the marginal social or public cost by the amount of the external cost, i.e., the cost of the smoking stacks and water pollution. |
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http://en.wikipedia.org/wiki/Externality
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| | Externality - Wikipedia, the free encyclopedia |
| | The value of the effects of the externality are likely not something that can be easily calculated in a technocratic way by economists or social planners, since they reflect the ethical views and preferences of the entire population. | | | From the perspective of anybody affected by the externality, it is either a negative factor in their lives (as with obnoxious smell or pollution) or a boon (as with the other's pretty clothes). | | | The marginal private cost is less than the marginal social or public cost by the amount of the external cost, i.e., the cost of the smoking stacks and water pollution. |
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http://en.wikipedia.org/wiki/Externality
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| | Network effect - Open Encyclopedia |
| | The network effect (or network externality) causes a good or service to have a value to a potential customer dependent on the number of customers already owning that good or using that service. | | | This type of side-effect in a transaction is known as an externality in economics, and externalities arising from network effects are known as network externalities. | | | However, network effects need not lead to market dominance by one firm, when there are standards which allow multiple firms to interoperate, thus allowing the network externalities to benefit the entire market. |
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http://open-encyclopedia.com/Network_effect
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| | Nov1-Externalities.doc |
| | Effects of externalities Presence of a negative externality is indicated by divergence between private cost and social cost. | | | For many externalities the impact of the externality on any one individual is relatively small, which means that the transaction costs dont have to be very high before it stops being worth my while to participate. | | | Internalizing the externality Internalization means bringing the agent affected by the externality under the same management as the agent generating the externality. |
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http://pacific.commerce.ubc.ca/alley/comm394/Nov1-Externalities.doc
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| | externalities defined |
| | Externalities are the costs or benefits of a market transaction that are borne (that is, paid for in some way) by parties that are not directly engaged in that transaction. | | | When externalities exist, seemingly beneficial market transactions may be inefficient or counterproductive and wasteful from the perspective of the total society. | | | Most costs and benefits of economic actions are internalized (that is, paid for by the producer or the consumer) such that those involved in the transactions see the full incentives and disincentives of their actions. |
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http://web.jjay.cuny.edu/~thematic/umbach/fall02burgers/externality.html
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| | Network Externalities (Effects) |
| | Network externality has been defined as a change in the benefit, or surplus, that an agent derives from a good when the number of other agents consuming the same kind of good changes. | | | The concept of network externality has been applied in the literature of standards, where a primary concern is the choice of a correct standard (Farrell and Saloner 1985, Katz and Shapiro 1985, Besen and Farrell 1994, Liebowitz and Margolis 1996). | | | If economists, for example, much prefer to have other economists join their network as opposed to, say, sociologists, then it would be possible for economists to form a coalition that switches to a new standard even if the new standard failed to attract many sociologists. |
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http://www.utdallas.edu/~liebowit/palgrave/network.html
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| | Foundation for Teaching Economics Externalities, Propery Rights and Pollution |
| | Externalities, also know as spillovers or neighborhood effects, are any costs or benefits of production and exchange that are not taken into account by those who create the costs or benefits. | | | Externalities - The cost and/or benefits that are not internalized by the processes of production and exchange, and which therefore spill over onto third parties. | | | Cooperation becomes more difficult and markets operate less efficiently when externalities exist, because individuals have no incentive to take into account the consequences of their actions for other people. |
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http://www.fte.org/teachers/lessons/efl/efllesson6.htm
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| | hall |
| | The positive externality is the cost savings to the public and emotional benefit to third parties (to the extent the drinker does not internalise this benefit) associated with reduced risks of illness and with longer life. | | | The net external marginal cost may - as in the case of alcohol - be the total of more than one type of cost, for example, health costs and productivity costs. | | | The distribution across drinkers of their marginal net externalities of alcohol consumption is a combination of the distribution of the two elements of net externalities: marginal positive externalities and marginal negative externalities. |
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http://www.aphru.ac.nz/hot/hall.htm
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| | Will Wilkinson / The Fly Bottle: Success as Pollution: Layard Meets Coase |
| | If so (and it seems plausible), then caring less about relative position may well be the least cost "solution" to the relative income externality "problem." And that's even if we treat preferences about relative position as having normative weight, which we shouldn't. | | | Layard interprets your gain in relative position as a straightforward negative externality -- in the book he actually calls it "pollution"-- and prescribes a straightforward Pigovian tax to minimize its harm. | | | It is supposed that such a tax is not distorting, does not cause a loss of efficiency or create deadweight losses, because the externality was, in this case, caused by an oversupply of labor stimulated by the race for relative position. |
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http://www.willwilkinson.net/flybottle/archives/2005/07/success_as_poll.html
(3252 words)
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| | Externalities |
| | An externality occurs when an economic agents consumption or production activities confer a benefit or impose a cost on other actors, and this benefit is conferred or this cost is imposed outside of a market. | | | A provision externality is a dynamic externality, and it is that together our animals impose a cost on the future provision of the good produced in the commons, that is we can cause environmental damage through overgrazing. | | | In the presence of an externality, the harmed party is theoretically willing to pay the harming party to reduce the activity generating the externality, but no market exists for them to conduct such an exchange. |
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http://faculty.maxwell.syr.edu/jomcpeak/lecture12.htm
(3252 words)
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| | Foundations of Microeconomics Chapter 8 -- eFoundations 8.1 |
| | Sometimes it is possible to overcome a negative externality by assigning a property right. | | | External costs are costs of production that fall on people other than the producer of a good or service. | | | Producers take account only of marginal private cost and overproduce when there is a marginal external cost. |
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http://occawlonline.pearsoned.com/bookbind/pubbooks/bpmicro_awl/chapter8/custom1/deluxe-content.html
(109 words)
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