externality

(noun)

In economics, an externality, or transaction spillover, is a cost or benefit that is not transmitted through prices and is incurred by a party who was not involved as either a buyer or seller of the goods or services causing the cost or benefit.

Related Terms

Examples of externality in the following topics:

  • Group-external and group-internal ties

    • The E-I (external - internal) index takes the number of ties of group members to outsiders, subtracts the number of ties to other group members, and divides by the total number of ties.
    • The resulting index ranges from -1 (all ties are internal to the group) to +1 (all ties are external to the group).
    • Next, we see the numbers of internal ties (14, or 22%) and external ties (50, or 78%) that yield a raw (not rescaled) E-I index of +.563.
    • That is, a preponderance of external over internal ties for the graph as a whole.
    • Also shown are the maximum possible numbers of internal and external ties given the group sizes and density.

  • Race and Ethnicity

    • An individual is usually externally classified (meaning someone else makes the classification) into a racial group rather than the individual choosing where they belong as part of their identity.
    • Unlike race, ethnicity is not usually externally assigned by other individuals.

  • Continuity Theory

    • The theory considers the internal structures and external structures of continuity to describe how people adapt to their circumstances and set their goals.
    • The external structure of an individual consists of relationships and social roles, and it supports the maintenance of a stable self-concept and lifestyle.
    • " He continued to expound upon the theory over the years, explaining the development of internal and external structures in 1989 and publishing a book in 1999 called Continuity and Adaptation in Aging: Creating Positive Experiences.

  • Sanctions

    • As opposed to forms of internal control, like norms and values, sociologists consider sanctions a form of external control.
    • As opposed to forms of internal control, like cultural norms and values, sociologists consider sanctions a form of external control.

  • Social Constructionism

    • Socially constructed reality is seen as an on-going dynamic process; reality is re-produced by people acting on their interpretations of what they perceive to be the world external to them.

  • Resource Mobilization Approach

    • Resources are understood here to include: knowledge, money, media, labor, solidarity, legitimacy, and internal and external support from a power elite.
    • movements develop in contingent opportunity structures, which are external factors that may either limit or bolster the movement, that influence their efforts to mobilize.

  • Mass Hysteria

    • Mass hysterias can also exhibit themselves in the sudden onset of psychogenic illnesses, or illnesses that are the result of psychology and not an external source (e.g., like a pollutant or infectious agent).

  • Selecting sub-sets of the data

    • You may select the rows, columns, or relations (matrices) to keep by listing them in external data files, or by choosing the names of the rows, columns or matrices from drop-down lists.
    • The first step (after you've decided which cases fall in which partition), is to create an external data file that lists partition membership.
    • The Data>Egonet tool lets you list the "egos" or "focal nodes" you'd like to extract by using an external file list or by selecting their labels from a drop-down list.

  • File handling tools

    • It also shows labels, and allows you import row and column labels from an external text file (just prepare an ASCII text file with the labels in rows, or comma delimited).

  • Control Theory

    • In other words, deviant behavior occurs when external controls on behavior are weak.