When externalities are present, decisions optimal for the person making them are not necessarily optimal for society. So what can be done about them?
How opening new hotels in China could damage the entire industry In late May, InterContinental Hotels Group (IHG) celebrated the opening of the IHG Shanghai Ruijin hotel. However, IHG’s spirits were probably dampened a bit by the bad news it received a week earlier. It was ordered to pay RMB 150 million to real estate […]