| Externalities: Externalities are unintended side effects or consequences, positive or negative, of economic activities impacting third parties not involved in the transaction. They occur when the actions of individuals or businesses generate spillover effects on others' welfare or resources, without compensation. Examples include pollution affecting communities or innovations benefiting industries beyond the innovator. See also Compensation, Economy._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. |
