MBAF 504- Individual Case Study
Identify a negative externality created by economic units (firms and consumers) and provide an
extensive analysis of the case by taking into account the following key points. You can use your
professional and/or personal experience, policy debates, debates in the literature, theory or media
(trends, policy debates, memes, etc) to come up with an externality issue on which you can provide
1. Identify the Issue: provide a problem statement explaining the issue
2. Point out the main consequences of such externality.
3. The Nature of the externality:
4. What kind of policy or market forces can best address the externality arising from this
economic unit’s act of production/consumption?
5. The Outcome: Are the policy measures or mitigation protocols you have in place successful?
Use best practices and empirical evidence to support your argument.
6. The Demand and Supply for the case under consideration in the presence of such externality:
Use supply-and-demand analysis to identify the effect of the externality and mitigation
protocols for producers and consumers.
7. Summarize your analysis using with policy implications and best practices
The general Layout of the case study will be:
II. Background on the use case and the theories of externality
III. A phenomenological general research of an organization in that industry
IV. Problem Statement
V. Economic analysis of the issue
VI. Mitigation mechanisms: Internalizing the Externality