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9. Private solutions to correct for externalities Consider the following scenario: Suppose that Neha
has just finished smoking a cigarette and is preparing to discard the cigarette butt onto her
neighbor Lorenzo's front lawn. Although there are no police officers present, she decides to carry
the butt to a trash can because she doesn't want to let others in the neighborhood see her littering.
Which of the following private solutions resolving the externality of littering took place in this
scenario? Contracts Charitier

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9 Private solutions to correct for externalities Consider t.pdf

  • 1. 9. Private solutions to correct for externalities Consider the following scenario: Suppose that Neha has just finished smoking a cigarette and is preparing to discard the cigarette butt onto her neighbor Lorenzo's front lawn. Although there are no police officers present, she decides to carry the butt to a trash can because she doesn't want to let others in the neighborhood see her littering. Which of the following private solutions resolving the externality of littering took place in this scenario? Contracts Charitier