Mosteanu, Tatiana; Iacob, Mihaela - In: Theoretical and Applied Economics 10(539) (2009) 10(539), pp. 35-42
Externalities represent a market failure situation and they appear when one person´s activities influence other person´s welfare in a way that is outside the market mechanism. In contrast to the effects transmitted by market prices, externalities negatively affect the economic efficiency. They...