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Some Policies Toward Externalities Provide Incentives So That Private Decision

question 27

Essay

Some policies toward externalities provide incentives so that private decision makers will choose to solve the problem on their own. What name do we use for these types of policies?


Definitions:

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Self-fulfilling Prophecy

A belief or expectation that influences actions in a way that causes the belief to become true.

Actor/Observer Bias

The tendency to attribute one's own actions to external causes while attributing other people's behaviors to their internal characteristics.

Ingroup/Outgroup Bias

The tendency to favor individuals within our group while being prejudiced against or hostile toward those in other groups.

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