Coase's View on the Reciprocal Nature of Externalities
Ronald Coase argued that externalities present a reciprocal problem. [3] Rather than viewing a situation as one party inflicting harm on another, Coase's perspective is that preventing harm to party B would inherently cause harm to party A. Consequently, the challenge is not simply to stop the initial harm, but to choose the course of action that avoids the more severe overall harm. [3]
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Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
Ch.10 Market successes and failures: The societal effects of private decisions - The Economy 2.0 Microeconomics @ CORE Econ
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