Difference between revisions of "Externalities"

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(Created page with "Externalities are factors that should go into a decision or are affected by a decision, but are not part of the decision making process. Any effects on them are externalized....")
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Externalities are factors that should go into a decision or are affected by a decision, but are not part of the decision making process. Any effects on them are externalized.
Externalities are factors that should go into a decision or are affected by a decision, but are not part of the decision making process. Any effects on them are externalized.
In current structures, externalizing as much as possible is incentivized. If a company can externalize the damage from pollution caused by their production outside of their balance sheet, they make more profit. Striving to make more profit is commendable economic behavior.
In current structures, externalizing as much as possible is incentivized. If a company can externalize the damage from pollution caused by their production outside of their balance sheet, they make more profit. Striving to make more profit is commendable economic behavior.
[[Category:Concepts]]
[[Category:Page Status - Overview]]

Latest revision as of 10:15, 14 August 2021

Externalities are factors that should go into a decision or are affected by a decision, but are not part of the decision making process. Any effects on them are externalized. In current structures, externalizing as much as possible is incentivized. If a company can externalize the damage from pollution caused by their production outside of their balance sheet, they make more profit. Striving to make more profit is commendable economic behavior.