In economics, an externality is an indirect effect of consumption or production activity on agents other than the originator of such activity. We observe that internet is enabling the design of information services that become smarter more they are used because of the data generated in the process. We give examples from web search to make the notion of data externality concrete and propose that...

This paper examines the validity of the ̄ve fundamental theorems of international trade and some other issues in a general model of externality. The model allows the possibility of own-sector externality and cross-sector externality. This paper derives conditions under which some of these theorems are valid, and explains what the government may choose to correct the distortionary e®ects of exte...

We study competition in two sided markets with common network externality rather than with the standard inter-group e¤ects. This type of externality occurs when both groups bene…t, possibly with di¤erent intensities, from an increase in the size of one group and from a decrease in the size of the other. We explain why common externality is relevant for the health and education sectors. We focus...

Many wearable device products come into the market recently. As a specific application of mobile health, wearable device has garnered attentions form both practitioners and scholars. In this paper, we investigate the impact of network externality and optimal product design of wearable device in a two-dimensional product differentiation model considering a market that has a broad product variety...

1. General theoretical considerations .................................................................................... 2 2. Self-related functions......................................................................................................... 3 1) Externality................................................................................................................................

This paper introduces some basic features of externality. Emphasis is given to the analysis of externality in the theory of international. It also discusses about the right government policies to correct externality. This paper and three accompanying papers are prepared for a monograph to be published by Tamkang University, Taiwan.

We examine an economy with n production sectors that interact via a production externality We nd a solution to the resulting dynamic di erential game between sectors and compare it to the cooperative solution As the number of sectors increases the limiting policy is the optimal policy without a production externality This policy is ine cient and depending on the sign of the externality between ...