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Busy Bees cartoon

Honey bees tell an interesting story of how businesses settle payments for spillover costs and benefits among them.

Glossary:

  • external benefits
    Free benefits conferred on innocent third parties due to unassigned or poorly assigned property rights or when the cost exceeds the benefit of exercising properly assigned rights. Also known as positive externality.

Topics:

Externality, Property Rights

Keywords

bees, Coase Theorem, external benefits, fable