Chapter 20
Externality
Interfirm Externalities
Beneficial Externalities
Externalities in Utility
Public Goods Externalities
Externalities and Allocative Inefficiency
Externalities and Allocative Inefficiency
Externalities and Allocative Inefficiency
Externalities and Allocative Inefficiency
Externalities and Allocative Inefficiency
Finding the Efficient Allocation
Finding the Efficient Allocation
Finding the Efficient Allocation
Finding the Efficient Allocation
Finding the Efficient Allocation
Inefficiency of the Competitive Allocation
Inefficiency of the Competitive Allocation
Production Externalities
Production Externalities
Production Externalities
Production Externalities
Production Externalities
Production Externalities
Production Externalities
Production Externalities
Solutions to the Externality Problem
Solutions to the Externality Problem
Solutions to the Externality Problem
A Pigouvian Tax on Newsprint
A Pigouvian Tax on Newsprint
Taxation in the General Equilibrium Model
Taxation in the General Equilibrium Model
Taxation in the General Equilibrium Model
Pollution Rights
Pollution Rights
Pollution Rights
The Coase Theorem
The Coase Theorem
The Coase Theorem
The Coase Theorem
Attributes of Public Goods
Attributes of Public Goods
Attributes of Public Goods
Public Good
Public Goods and Resource Allocation
Public Goods and Resource Allocation
Public Goods and Resource Allocation
Public Goods and Resource Allocation
Public Goods and Resource Allocation
Failure of a Competitive Market
Failure of a Competitive Market
Inefficiency of a Nash Equilibrium
Inefficiency of a Nash Equilibrium
The Roommates’ Dilemma
The Roommates’ Dilemma
The Roommates’ Dilemma
The Roommates’ Dilemma
The Roommates’ Dilemma
The Roommates’ Dilemma
The Roommates’ Dilemma
Lindahl Pricing of Public Goods
Lindahl Pricing of Public Goods
Lindahl Pricing of Public Goods
Lindahl Pricing of Public Goods
Shortcomings of the Lindahl Solution
Important Points to Note:
Important Points to Note:
Important Points to Note:
Important Points to Note:
Important Points to Note: