Consumption Externality Consider two agents a and b, and two commodities, money and smoke Both smoke and money are goods for Agent A Money is a good and smoke is a bad for Agent B Smoke is a purely public commodityConsider two agents, A and B, and two commodities, money and smoke. Both smoke and money are goods for Agent A. Money is a good and smoke is a bad for Agent B. Smoke is a purely public commodity. Consumption Externality