Positive externality definition

Search

Positive externality

Positive externality logo #21015 A beneficial externality; that is, a beneficial effect of one economic agent's actions on another. Considered a distortion because the first agent has inadequate incentive to act. Examples are the attractiveness of well-kept farms for the tourism industry (a production externality) and reduced contagion of disease due to vaccines (a consumption ex...
Found on http://www-personal.umich.edu/~alandear/glossary/
No exact match found.