Externalities
Lecture Notes
Introduction
Person--to--Person Externalities
Firm--to--Firm Externalities
Remedies for Externalities
Negotiation
Without Negotiation
Common Property Resources
Diagrams
Figure 1 : Person--to--Person Externality
Figure 2 : Firm--to--Firm Externality
Figure 3 : The Pigouvian Tax Rate
Figure 4 : When the Polluting Firm Should Get the Property Right
Figure 5 : When the Polluting Firm Should not be Allowed to Pollute
Figure 6 : Common Property Resources
