Leif Wickland

57%
Flag icon
The challenge is that public sanitation isn’t something the market necessarily provides. Toilets cost money, but defecating in the street is free. If I install a toilet, I bear all the costs, while the benefits of the cleaner street are felt by everyone. In economic parlance, that’s what is known as a positive externality—and goods that have positive externalities tend to be bought at a slower pace than society, as a whole, would prefer.
Leif Wickland
Positive externality
Fifty Inventions That Shaped the Modern Economy
Rate this book
Clear rating
Open Preview