An asymmetry

posted by
November 17, 2011
Cafe Hayek
by Don Boudreaux  
Posted in Commentary

"Imagine a situation in which A, when pursuing his own interest within institutional setting Z, has inadequate incentives to take account of the effects of his actions on B. Without intending any harm to B -- perhaps without realizing that B might be affected by his actions -- A likely harms B whenever A pursues his own interest when he chooses and acts in setting Z. Economists, of course, have a name for this problem: negative externality." (11/16/11)  

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