3. Sources of Market Failure Externalities Merit and Demerit Goods Public Goods Abuse of Monopoly Power
4. Positive Externalities Negative Externalities Third parties benefit from the production of goods and services Third parties bear spillover costs of the production of goods and services Third parties benefit from the consumption of goods and services Third parties bear spillover cost of the consumption of goods and services
16. Market-based Appeal Internalize Externality Offending Firms and third parties monitor progress Extension of Property Rights to Correct Negative Externalities