a)Basic concepts:privatization;incomplete contract; b)Key points:The factors that determine whether a good is provided by the public or by the private;the debate between public production and private production. 3)Questions and application How to understand this sentence:public versus private ownership is less important than whether competition exists? c.Reflections and Application Some privately run airports provide amenities such as pod hotels,which enable fliers to nap between flights.These amenities are generally not available at publicly run airports.Given this,would you recommend that airports be privatized?If not,what other information would you require? d.Teaching Method and Pedagogy Multimedia technologies and network platform will be used in the process of lectures.There are also some class discussions about related topics and cases. Chapter 5 EXTERNALITIES a.Objectives and Requirements 1)Grasp the connotation,types and characteristics of externality. 2)Understand the difference between negative externality and efficiency output. 3)Master the content and application of Coase Theorem. 4)Be familiar with the ways of tax and subsidy to solve externalities. 5)Master the realization of emission fees and cap-and-trade programs. b.Content Section 1 The Nature of Externality 1)Main Content a)The definition of externality: b)Characteristics of externality: c)geometric expression and explanation of externality.a) Basic concepts: privatization; incomplete contract; b) Key points: The factors that determine whether a good is provided by the public or by the private; the debate between public production and private production. 3) Questions and application How to understand this sentence: public versus private ownership is less important than whether competition exists? c.Reflections and Application Some privately run airports provide amenities such as pod hotels, which enable fliers to nap between flights. These amenities are generally not available at publicly run airports. Given this, would you recommend that airports be privatized? If not, what other information would you require? d.Teaching Method and Pedagogy Multimedia technologies and network platform will be used in the process of lectures. There are also some class discussions about related topics and cases. Chapter 5 EXTERNALITIES a.Objectives and Requirements 1) Grasp the connotation, types and characteristics of externality. 2) Understand the difference between negative externality and efficiency output. 3) Master the content and application of Coase Theorem. 4) Be familiar with the ways of tax and subsidy to solve externalities. 5) Master the realization of emission fees and cap-and -trade programs. b.Content Section 1 The Nature of Externality 1) Main Content a) The definition of externality; b) Characteristics of externality; c) geometric expression and explanation of externality