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Nelson EducationHigher EducationPrinciples of Microeconomics, Fourth Canadian EditionStudent Resources | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Chapter 10. Externalities
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
CCoase theoremthe proposition that if private parties can bargain without cost over the allocation of resources, they can solve the problem of externalities on their own
Eexternalitythe uncompensated impact of one person's actions on the well-being of a bystander
Iinternalize the externalityalter incentives so that people take account of the external effects of their actions
PPigovian taxestaxes enacted to correct the effects of negative externalities
Ttransaction coststhe costs that parties incur in the process of agreeing and following through on a bargain
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