|Mause I 157
Externalities/Demsetz: External effects (influencing the market by decisions of the uninvolved) cause costs for the procurement of information and time for negotiations. Money: Under these circumstances, the implementation of the exclusion principle will have to satisfy a rational cost-benefit consideration - rational individuals will only enforce the exclusion of third parties, that are unwilling to pay, to the extent that their net benefit is positive, so that it can be expected that there will always be an optimal degree of externality that will be below the full internalisation of the external effect. (1)
1. H. Demsetz, Toward a theory of property rights. American Economic Review 57 (2), 1967, p. 347-359._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. The note [Author1]Vs[Author2] or [Author]Vs[term] is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition.
Toward a theory of property rights 1967
Politik und Wirtschaft: Ein integratives Kompendium Wiesbaden 2018