Learn how externalities impact economic equilibrium and contribute to market failure in economic transactions, affecting both ...

An externality is a cost or benefit related to the production or consumption of a good or service that affects third parties unrelated to the production or consumption. It is generally the unintended, ...

Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Katrina Ávila Munichiello is an experienced editor, writer, fact-checker, and ...