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vfairch vfairch
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5 years ago
Why are externalities associated with common property rather than private property?
Textbook 
Economics Today: The Micro View

Economics Today: The Micro View


Edition: 19th
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5 years ago
 When private property rights exist, individuals can take someone to court and collect damages when the actions of that person damage the individual's property. When the person has to pay damages, the externality is internalized. With common property, no one can exclude anyone else and there is no legal recourse for collecting damages from the person.
vfairch Author
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5 years ago
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