In economics, an externality is the cost or benefit that affects a third party who did not choose to incur that cost or benefit. Externalities often occur when the production or consumption of a product or service's private price equilibrium cannot reflect the true costs or benefits of that product or service for society as a whole.
A pecuniary externality occurs when the actions of an economic agent cause an increase or decrease in market prices. For example, an influx of city-dwellers buying second homes in a rural area can drive up house prices, making it difficult for young people in the area to get onto the property ladder.
Oct 09, 2019 · externality (countable and uncountable, plural externalities) ( uncountable ) The state of being external or externalized . 1916 , Ralph Barton Perry, Present philosophical tendencies  , page 319:
In economics, an externality is the cost or benefit associated with a transaction which is not reflected in the market mechanisms governing its price. The commonest example is pollution , as when the price of coal is determined by the costs of its extraction and sale without taking account of the pollution it causes.
For the effect of secondhand smoke, see externality. Statistically, 80% of smokers want to quit, and 54% of people who are serious about quitting fail in a week or less.  This implies that they do not act in their long-term best interest due to short-term discomfort, also known as a self-control problem.
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A network effect (also called network externality or demand-side economies of scale) is the effect described in economics and business that an additional user of goods or services has on the value of that product to others. When a network effect is present, the value of a product or service increases according to the number of others using it.
Externalita alebo externý efekt je v ekonómii vonkajší účinok (efekt) rozhodnutia či existencie či činnosti úmyselne či neúmyselne prenesený z daného ekonomického subjektu na iný subjekt alebo okolie, resp. z iných subjektov alebo okolia na daný ekonomický subjekt.
Externality v ekonomické teorii a jejich dopady na ekologii České republiky po roce 1989 = Externalities in economic theory and their influence on ecology in Czech Republic after 1989. Brno, 2009. 102 s.
Categories. Different economists have different views about what events are the sources of market failure. Mainstream economic analysis widely accepts that a market failure (relative to Pareto efficiency) can occur for three main reasons: if the market is "monopolised" or a small group of businesses hold significant market power, if production of the good or service results in an externality ...
May 26, 2019 · An externality is an economic term referring to a cost or benefit incurred or received by a third party who has no control over how that cost or benefit was created.
- Will Kenton