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Step 1. Watch the TED talk by Rob Harmon discussion about markets helping keep streams in Montana flowing (Duration – 8 minutes 47 seconds)Rob Harmon TED talk (Links to an external site.)
Step 2. Virtually explore your own neighborhood, town, or city and find an example of a negative externality.Step 3. Tell us about it in a discussion post. Your post must include four (4) things:Identification of your local environment negative externality.One (1) pointAn assessment of the market failure that allows the externality to occur. Why are existing markets failing?Two (2) pointsIdentification of the parties involved. Who is the economic agent generating the externality and who are the agents that are directly and unintentionally affected by the actions of the generating agent?Two (2) pointsCompose a 250 word (max) discussion of if and how you could use a market-based solution (similar to the one in the video) to align incentives to correct the externality in your community.Three (3) pointsStep 4. Peer Review: Please respond to one of your classmates posts and provide the following two (2) items:An assessment of whether their externality is an issue in your community as wellA critique of their chosen market-based solution with one (1) positive aspect and one (1) aspect that needs improvementTwo (2) points for response (1 point for each item)
Compose a 250 word (max) discussion of if and how you could use a market-based solution (similar to the one in the video) to align incentives to correct the externality in your community.
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