Please enable JavaScript.
Coggle requires JavaScript to display documents.
Cost benefit analysis - Coggle Diagram
Cost benefit analysis
-
Asymmetric information
-
Types
Adverse selection:
when sellers have information that buyers do not have
on product quality or when buyers have information that sellers do not have on product
quality
-
Externalities
Definition: Where the actions of a producer or consumer give rise to side effects on others not directly involved in the action
Types
Negative:
where the side effects of an action have a negative impact that imposes costs on third parties.
Positive:
where the side effects of an action have a positive impact that imposes costs on third parties.
-
-
-