Good: Place to socialiseEasy to get drinksWIFI (?)MealsWatch SportBad: Litter – Cigarettes / Glass bottles etcDrunks – Maybe fights? Noisy – When you want to go to sleepLots of bad language (Which children hear)Urination of your propertyDepends on if this is a friendly pub with nice customers…
E.g. if a company decides to build a car park, a flat outside car park is cheaper to construct, but uses more space.
Car Park in Chicago – Looks like no barriers… Still not convinced about the razor thin wires…
3. Private Costs
Costs to the company of their actions
Flat Car Park
• Cheaper to
• Uses More
• Less Space
What do you think is the key factor for a
company in this choice?
4. Private Benefit
What the company gets for the action
• Charge for its use
• Encourage people to come to your
shopping Centre / Attraction
• Space for your employees to park
• Stop people parking in the street
5. External Costs
External costs are the costs to other people. The
external cost in the car park’s case is the loss of
the parkland and for local residents it might
spoil their view.
6. External Benefits (Positive
External benefits are benefits to
people who are not involved in
the business. It might stop park
users from parking in residents
driveways and along the road
near their houses.
7. Key Term
Person not involved in decisions of the company.
i.e. Not the business or the customer.