4 ms·
The cost of regulatory compliance is the way to price in externalities. The other option is a lawsuit after the damage is done.
by wffurr 7y ago
The cost of regulatory compliance is the way to price in externalities. The other option is a lawsuit after the damage is done.
- dalbasal 7y agoThat's not quite "pricing."
- specialist 7y agoaka the cost of doing business, overhead
- wffurr 7y agoI'm not sure how else one "prices" an externality. Require the company to clean up after itself - that costs money, the company then internalizes that cost into their operating structure and the cost of their products.