For Voluntary Action to Correct an Externality

question 293

Multiple Choice

For voluntary action to correct an externality

• A) transaction costs have to be high.
• B) transaction costs have to be low.
• C) transaction costs have to be split evenly between all of the parties involved.
• D) transaction costs are irrelevant.

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Definitions:

Reinforcement

Reinforcement in psychology is a concept in behaviorism that increases the likelihood of a response by following it with a positive stimulus or the removal of a negative one.

Partial Reinforcement Effect

The tendency for a behavior to become more resistant to extinction following intermittent reinforcement than after continuous reinforcement.

Behavioral Contrast Effect

A phenomenon observed in conditioning where the response to a conditioned stimulus changes when an alternative stimulus is presented with different reinforcement conditions.

Extinction

In behavioral psychology, the process whereby a conditioned response decreases in frequency and eventually disappears as a result of the conditioned stimulus being presented without reinforcement.