4. External costs result from the failure or inability of a society to establish private property rights.

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4. External costs result from the failure or inability of a society to establish private property rights. Clearly established private property rights enable owners to prohibit others from using or abusing their property. In contrast, communal property rights normally result in overutiliza tion, since most of the cost of overutilization (and misuses)

is imposed on others.

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Economics Private And Public Choice

ISBN: 9780123110404

2nd Edition

Authors: James D Gwartney; Richard Stroup; A H Studenmund

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