Difficulty of Measuring Marginal Social Costs
A significant challenge for both government interventions and private Coasean bargaining is the difficulty of accurately measuring marginal social costs. While a firm's marginal private costs are often readily available, quantifying the monetary value of external harm to individuals or society as a whole is a complex task. This informational barrier complicates the design of effective policies.
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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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