The Coase Theorem posits that markets can resolve externalities without government intervention if parties can negotiate costlessly.
Deadweight loss represents the cost to society created by market inefficiency, which can occur in different forms, such as monopoly pricing, externalities, taxes, subsidies, and scarcity pricing.
Externalities are costs or benefits that affect third parties who did not choose to incur those costs or benefits, often a consideration in economics and public policy.
Spillover refers to the effects of economic activity or processes on individuals or groups who are not directly involved in the activity. These can be either positive or negative, impacting those who live or work nearby.
