Externality

“In economics, an externality is the cost or benefit that affects a party who did not choose to incur that cost or benefit”

Types –

Negative, Positive, Positional Inframarginal, Technological

Positive Externalities a problem because if a company can’t get payback (i.e. competitors can free-ride) then why bother spending time and energy innovating?

Words, ideas, videos

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