another neglected source of externalities is prejudice (which is a form of "care" I guess). A gay couple might have large negative externalities on nearby bigots if they walk down the street holding hands (I think this example is a nice counterexample to the idea it's always good for the government to internalize the cost of externalities).
I think the thing about this sort of externality is that, while it's real, we agree to sort of ignore it when doing cost/benefit analyses because otherwise we don't really have an individualist society.
You mean smth like wasting their life savings on gambling and causing family members to worry about their financial situation even if the gambler doesn't directly causing discomfort (like asking or stealing money) for them?
Wicked good point.
another neglected source of externalities is prejudice (which is a form of "care" I guess). A gay couple might have large negative externalities on nearby bigots if they walk down the street holding hands (I think this example is a nice counterexample to the idea it's always good for the government to internalize the cost of externalities).
I think the thing about this sort of externality is that, while it's real, we agree to sort of ignore it when doing cost/benefit analyses because otherwise we don't really have an individualist society.
You mean smth like wasting their life savings on gambling and causing family members to worry about their financial situation even if the gambler doesn't directly causing discomfort (like asking or stealing money) for them?