Definition of 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.
How to use Positive externality in a sentence?
- Even though they werent sure why they were receiving residuals, the investors happily cashed the checks, learning long ago not to question any positive externality , no matter how mysterious.
- Sometimes a third party may enjoy a positive externality they never could have seen coming after others close a deal.
- The positive externality was not directly accounted for in the journal entry made by the accountant so we made a footnote of it in the report.
Meaning of Positive externality & Positive externality Definition