Healthcare expenditure in the United States has grown and will continue to increase. The increasing healthcare expenditure is to reduce real income as well as to diminish total utility and increase financial stresses. This study argues that the most critical factor that increases healthcare expenditures during last 50 years has been the advent, adoption and diffusion of new medical technologies...

In a system of interdependent users, the security of an entity is affected not only by that user’s investment in security measures, but also by the positive externality of the security decisions of (some of) the other users. The provision of security in such system is therefore modeled as a public good provision problem, and is referred to as a security game. In this paper, we compare two well-...

If rational individuals pay the full costs of their decisions about food intake and exercise, economists, policy makers, and public health officials should treat the obesity epidemic as a matter of indifference. In this paper, we show that, as long as insurance premiums are not risk rated for obesity, health insurance coverage systematically shields those covered from the full costs of physical...

Different policies have been implemented around the world seeking to deliver demand response potential in the electricity markets. Externalities, namely the CO2 externality, have been one of the key concerns in the debate on the effectiveness of different policies regarding demand response development. Although most previous researches have centred on the short-term assessment of different poli...

Governments create contests to allocate resources stakeholders, e.g., grants, contracts. The actions of these stakeholders can generate a positive externality for themselves—the contest winner attract additional outside funding and donations from third-parties who want jump on the winner’s bandwagon. Herein we examine externalities arising created by governance their impact virtuous circle cont...

Abstract How to fight global problems with local tools? When only firms know what externality-producing activities can be relocated, policies shape the location distribution of firm types different social values. We find that, because this selection effect, optimal confront firms’ mobility elevated corrective externality prices, in contrast common remedies for relocation risk. Our mechanism inc...

The development of genetically modified (GM) crops has led the European Union (EU) to put forward the concept of ‘coexistence’ to give farmers the freedom to plant both conventional and GM varieties. Should a premium for non-GM varieties emerge in the market, ‘contamination’ by GM pollen would generate a negative externality to conventional growers. It is therefore important to assess the effec...

land- phone, like mobile, internet and fax is a communication device and has network externality effect. thus as the penetration coefficient increases, the network effect improves. the transmission of information via the word of mouth is the main source of enhancing the network externalities coefficient. in this article we have investigated the factors affecting the network externality coeffici...