Walter is about to leave, but Saul takes some time to advise against it. While it may seem like he’s doing what’s best for his family, Saul explains how law enforcement will come after Skyler and ruin Walter’s family. Walter is making a private decision about what to do and what he believes is best, but he may be ignoring all of the costs he imposes on other people by running. Saul suggests that if he truly cares about his family then he’ll turn himself in.
See more: externalities, interdependent utility functions, negative externalities, private benefits, private costs, social costs
A plane crashed in the city of Albuquerque. From damaged property to the loss of life on the ground, everybody is dealing the negative externalities brought about by the crash. One explanation is that the control tower agent was grieving and not paying attention to his job. If true, his private decision to go to work could have very large social costs.
See more: externalities, negative externalities, private benefits, private costs, social costs