positive externality


Positive effect or benefit realized by a third party resulting from a transaction in which they had no direct involvement. In financial transactions, a positive externality provides benefits to individuals in the form of a "spillover". For example, higher wages and improved health benefits for workers is a positive externality of a company merger. Also called external benefit.

Use this term in a sentence

Related Videos


Have a question about this term? Ask for help in the
advertise here

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z