Examples of Externalities Negative Externalities Positive externalities Pollution Research development Cell phones in a movie theater Vaccinations Congestion on the internet A neighbor's nice landscape Drinking and driving Students asking good questions Student cheating that changes in class the grade curve The"LoJack" anti-theft devise The Clubanti-theft devise for for automobiles automobiles Not Considered Externalities Land prices rising in urban area Known as"pecuniary externalities3 Examples of Externalities • Negative Externalities – Pollution – Cell phones in a movie theater – Congestion on the internet – Drinking and driving – Student cheating that changes the grade curve – The “Club” anti-theft devise for automobiles. • Positive Externalities – Research & development – Vaccinations – A neighbor’s nice landscape – Students asking good questions in class – The “LoJack” anti-theft devise for automobiles • Not Considered Externalities – Land prices rising in urban area. – Known as “pecuniary” externalities