Act IV · The Play Begins · Module 11
Town Crisis
Externalities and public goods
42 slides · Hubbard & O'Brien, chapter 5.
The story
Where this fits in Marginal Falls
A smoke complaint introduces a resident who is affected by a transaction without being a buyer or seller. The town must now distinguish private incentives from social costs and benefits, and ask how goods used collectively will be provided.
A question to take into class
Can an exchange benefit its buyer and seller while imposing a cost on someone else in Marginal Falls?
From the slides to the classroom
Activities used in this module
This module is taught through its slide deck and classroom discussion. No dedicated live activity is used for this topic.
Activities open at marginalfalls.com. Students join using the room code supplied by their instructor.