Private Benefit

Definition

Alex Tabarrok (reference below) defines social benefit as received by the consumer or the producer.

• Private benefit – the benefit received by the consumer or the producer
• External benefit – a benefit received by people other than the consumers or producers trading in the market, a benefit to bystanders (see External Benefit)
• Social value – the benefit to everyone: the private benefit + external benefit (see Social Value)

Atlas topic, subject, and course

Externalities (core topic) in Economic Analysis and Atlas102 Economic Analysis.

Source

Alex Tabarrok, minute 0.30 to 1:00 of External Benefits (8-minute video), Principles of Economics – Microeconomics, Marginal Revolution University, at http://www.mruniversity.com/courses/principles-economics-microeconomics/flu-shot-positive-externalities-pigovian-subsidy, accessed 6 May 2016.

Page created by: Ian Clark, last modified 6 May 2016.