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Externality


A Good Fence Makes Good Neighbors (4/19/2001)

Fencing makes it easier to enforce property rights.

Keywords: enforcement costs, fence, negative externality, property rights, spillover costs

Busy Bees cartoon (11/2/2011)

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

Keywords: bees, Coase Theorem, external benefits, fable

Coasian Bargaining & Property Rights (10/5/2017)

Efficient assignment of property rights could achieve efficient adverse impact without negotiation cost and Coasian bargaining.

Keywords: adverse impact, Coase, Coasian bargaining, externality, negotiation cost, pollution, property right

Condom Economics (3/7/2007)

The externality and time horizon of costs and benefits bedevil college distribution of condoms.

Keywords: casual sex, condom, external benefit, external cost, honor system, opportunity cost, pregnancy, private benefit, private cost, sexually transmitted diseases, short-term vs long term, subsidy, vending machines

External Benefit and External Cost (11/2/2011)

External cost and external benefit exist because some property rights have not been clearly defined and enforced. Their existence leads to misallocation of resources.

Keywords: Coase Theorem, external benefit, external cost, externality, property rights

External Benefit and External Cost (transcript) (3/27/2007)

The existence of external cost and external benefit leads to misallocation of resources.

Keywords: Coase Theorem, external benefit, external cost, externality, internalization, resource allocation

Free Riding on Preventive Health Care (8/16/2000)

Individual health insurers may be reluctant to aggressively offer smoking cessation treatment to their insured members because of high turnover of treated patients to other health insurers

Keywords: free rider, health care, HMO, insurance, preventive service

Metered Consumption (3/7/2007)

Resource conservation depends on who pays and the time horizon of costs vs benefits.

Keywords: energy conservation metering, energy efficiency, external cost, fixed cost, insulation, internal cost, landlord, life cycle cost, long-term benefit, marginal cost, private cost, property right, short-term cost, social cost, tenants, water

One Road's Congestion Is Another Road's Revenue (12/21/2001)

Charging motorists for contributing to rush-hour congestion may be economists' dream of internalizing negative externality on toll roads but politicians' nightmare when competing highways are free.

Keywords: 91 Express Lanes, California Private Transportation, Caltrans, congestion pricing, external cost, negative externality, non-compete clause, Orange County, revenue, Riverside Expressway, toll road, traffic, value pricing

Pollution control (transcript) (3/27/2007)

Narrated lecture on cost efficient pollution control when firms have different pollution-reduction costs.

Keywords: cost, cost efficiency, pollution control, pollution quota, pollution reduction, pollution tax, uniform reduction

Property Rights and Externality (7/7/2006)

Transferable and enforceable property rights encourage investment and high-valued uses.

Keywords: barbed wire, cattle ranching, commons, enforcement cost, external benefit, external cost, externality, ownership, Property rights, spillovers, transferability

Scoop Your Poop (11/2/2011)

Enforceable property rights reduce external costs.

Keywords: enforcement costs, external costs, fence, property rights

Spillovers Are Not Always Externalities (6/22/2006)

External costs or benefits exist only if property rights have not been clearly defined and/or when the negotiation or enforcement cost exceeds damage.

Keywords: airport, compensation, externality, golf course, internalize, property rights, shopping malls, spillovers

Systems Competition and Network Effects (9/26/2000)

A dominant network based on a near universal standard can internalize a great deal of system externality to the benefits of network users and can persist even in the face of technically superior competing networks.

Keywords: compatibility, complementary products, coordination, expectation, network externality, system

The Annoying Neighbor (12/21/2001)

Tit-for-tat is one way to force producers of negative externalities to internalize them.

Keywords: annoying neighbor, honking, negative externalities, transaction costs

The Right to Pollute? (10/20/1999)

Pollution credits convert the atmosphere from a commons into private property. They can reduce pollution if the pollution cap is lower than the unrestricted total and lower the costs of reducing pollution if credits can be sold from low-cost avoiders and high-cost avoiders.

Keywords: allowances, Clean Air Act, commons, emissions, Environmental Protection Agency, EPA, greenhouse gases, nitrogen oxide, pollution, pollution credits, private property, quotas, sulfur dioxide, trading, utilities.

There Is No Free Parking (2/3/2007)

Free or subsidized parking has suffocated the development of mass transit and increased traffic congestion and air pollution.

Keywords: air pollution, cruising, curb parking, Disney Hall, fees, free parking, Los Angeles, Louise Davies Hall, mass transit, off-street parking, San Francisco, subsidized parking, traffic congestion

To Stand or Not to Stand? (10/24/2001)

Charging a time fee for using restrooms may reduce congestion by discouraging overuse.

Keywords: congestion pricing, opportunity cost, restroom, waiting line

Tragedy of the Commons (11/2/2011)

Unlimited entry could easily lead to over-exploitation of commons resources.

Keywords: AP, average product, commons, marginal product, MP, over-exploitation, tragedy

Tragedy of the commons (transcript) (3/27/2007)

Narrated lecture on over-exploitation of commons resources due to unlimited entry.

Keywords: average product, commons, externality, free entry, marginal product, property rights, total product

Your Customers Are My Customers (11/2/2011)

When it comes to external benefits, appearance could be deceptive.

Keywords: common ownership, external benefits, hamburger, ice cream, social costs, Steven Cheung