Private Benefit


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.


Alex Tabarrok, minute 0.30 to 1:00 of External Benefits (8-minute video), Principles of Economics – Microeconomics, Marginal Revolution University, at, accessed 6 May 2016.

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