Alex Tabarrok (reference below) defines social value (or social benefit) is the benefit to everyone – the sum of private benefit and external benefit.
- Private benefit – the benefit received by the consumer or the producer (see Private Benefit)
- 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
Atlas topic, subject, and course
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.