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A new class of externality recently making rounds is information externality. The information produced by one firm generates benefits for other firms. Such as success
A new class of externality recently making rounds is information externality. The information produced by one firm generates benefits for other firms. Such as success of an oil well on a tract of land increases the probability of finding oil in the adjacent tract and hence increases the value of tract. Think and write about another example of information externality. What are the likely consequences of information externality on efficiency of resource allocation? Will there be any possible private market solutions?
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