Monday, October 11, 2010

Private Sector Corrections of Externalities

That is a poster from Scotty's Brewhouse in Bloomington. Note that, if people who take shots are less likely to get a flu shot than those who do not, then this could be a more efficient correction of externalities than, say, a small percentage discount of their next meal. Essentially, it could be a form of tagging in lieu of a Pigouvian subsidy.

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