Term
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Definition
| the uncompensated impact of one person's actions on the well-being of a bystander |
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Term
| internalizing the externality |
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Definition
| altering incentives so that people take account of the external effects of their actions |
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Term
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Definition
| the impact of one firm's research and production efforts on other firm's access to technological advance |
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Term
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Definition
| government intervention in the economy that aims to promote technology-enhancing industries |
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Term
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Definition
| provide incentives so that private decision makers will choose to solve the problem on their own |
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Term
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Definition
| a tax designated to induce private decision makers to take account of the social costs that arise from a negative externality |
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Term
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Definition
| the proposition that if private parties can bargain without cost over the allocation of resources, they can solve the problem of externalities on their own |
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Term
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Definition
| the costs that parties incur in the process of agreeing to and following through on a bargain |
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