3 ms·
What you're describing is not an externality at all. It's an explicit cost to the driver that will hopefully make them alter their behavior. It makes the parki
by antisthenes 10y ago
What you're describing is not an externality at all. It's an explicit cost to the driver that will hopefully make them alter their behavior.
It makes the parking (end goal) more expensive to them via both time (additional time to park) and money (gas wasted during finding the parking spot), so it is reflected in the cost of the good. Thus it is not an externality.
- hueving 10y agoNo, if they don't care it's not entirely reflected in the good. This happens quite frequently with emissions. If you do something that causes a bunch more people to produce emissions (e.g. Lower the cost of gasoline by 90%), you are partially responsible for those externalities.