Economics in Curb Your Enthusiasm: Externalities and Market Failures
Larry David Gets Annoyed by Cell Phone Guy
Do you get annoyed by a loud cell phone conversation? Larry David does, and he has a good reason to be. Larry is being hurt by a negative externality.
An externality is a side-effect that affects a third party who wasn't involved in the transaction. In Curb Your Enthusiasm, we see examples of Larry David being annoyed by externalities, and that is what we will examine in this video.
In this video, we:
Watch two clips of externalities from Curb Your Enthusiasm
Define externalities and look at cases of positive and negative externalities
Discuss how externalities can be corrected
And more!
Watch the video for more!