Principles of Microeconomics - Chapters 10 and 11: Externalities and Public Goods

In this video, I discuss the economics of positive and negative externalities, the Coase Theorem, tradeable permit systems, and public goods. What's the right amount of pollution? 0:44 Externalities 3:00 Negative externalities 4:00 Positive externalities 6:55 Analysis of a negative externality 9:40 External costs 13:53 Market failure 17:55 Analysis of a positive externality 19:07 External benefit 21:14 What causes externalities? 24:02 Private solutions to externalities 27:55 Coase Theorem 32:43 Government remedies to externalities 36:29 Pigouvian tax 36:36 Command and control 43:08 Market-based systems 44:04 Tradable permit system 44:19 Types of good 47:20 Rivalry 47:29 Excludability 48:21 Private goods 49:20 Public goods 50:19 Free rider effect 52:45 Quasi-public goods 53:25 Common resources 54:13 Demand for a public good 55:51 Efficient level of a public good 1:00:45 Common resources 1:02:35 Tragedy of the commons 1:03:00