Examlex
Some baby owls are reared in an enriched environment (Group A) , and others are reared in a standard individual cage (Group B) . Then, owls from both groups are fitted with goggles that used prisms to displace their vision. How would the response to the goggles in Group A be expected to differ from that of Group B?
Externalities
Economic impacts on bystanders not directly engaged, with potential for both positive and negative outcomes.
Transaction Costs
The expenses incurred when buying or selling goods and services, which can include fees, commissions, and the costs of the time and effort involved in making the transaction.
Coase Theorem
A principle stating that if trade in an externality is possible and there are no transaction costs, bargaining will lead to an efficient outcome regardless of the initial allocation of property rights.
Externalities
Monetary consequences or side effects that touch upon third parties not directly engaged, with potential for both positive or negative outcomes.
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