Positive Externalities Issues

  • Someone who comes up with a solution cannot expect compensation each time the solution gets used. It results in reduced incentives toinvest time and effort to discover new solutions. Algorithms, patents, and copyright laws try to solve this dilemma by allowing creators to profit from their ideas for years.
  • The "free-rider" problem: When we enjoy something that we aren't paying for, we tend not to value it. A large portion of online content succumbs to the free-rider problem.

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