Externalities: A Note on Avoiding Confusion


Publication: Journal of Economic Education

Volume: Volume 16, No. 4

Issue: Fall 1985

Pages: pp. 305-308

Author(s): Cecil Bohanon

Title: Externalities: A Note on Avoiding Confusion

Abstract: In distinguishing the difference between a genuine externality and a pecuniary externity, Bohanon observes that the latter never enters third-party utility (or production) functions, whereas this is always the case with technical externalities.



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