Positive externality

Positive externality,

Definition of Positive externality:

  1. 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?

  1. 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.
  2. Sometimes a third party may enjoy a positive externality they never could have seen coming after others close a deal.
  3. 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