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Preferred term

spillover costs  

Definition

  • When producing, selling, buying, or consuming a good or service affects people other than those directly involved in the market exchange—for example, when a factory emits smoke that pollutes the air breathed by those in the vicinity—the economic activity is said to “spill over” and impose costs (or confer benefits) on people other than those directly involved in the transaction. Economists call spillover effects externalities. [Source: Encyclopedia of Medical Decision Making; Costs, Spillover]

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URI

https://concepts.sagepub.com/social-science/concept/spillover_costs

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