William Watson: How to fix an externality—handle with care

As I’ve mentioned in previous posts, May (and a little bit of June) is the Fraser Institute’s season for teaching economics to journalists, which I do with several American colleagues who are terrific teachers and enjoy economics as much as I do.After we’ve described the virtues of markets we also talk about market failure, including the problem of externalities, both positive and negative. We introduce externalities by playing this video—“When is a Potato Chip not just a Potato Chip?”—by Duke University professor of political science, Michael Munger. (For a political scientist he knows a lot of economics!) As you can

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