Negative externalities occur when a party's actions have an adverse impact on other individuals or entities. Various types of positive and negative externalities exist in any kind of market.

In summary, AI has the potential to significantly enhance a company's ability to design for positive externalities and mitigate negative ones.

A positive externality increases the social benefits of economic activity, so an adjusted demand/benefit curve would lie farther left on the diagram, reflecting a lower social price at each quantity.

Positive Externalities and the Role of Government Economist Paramo Sanyal of the Brattle Group discusses the the Universal Service Fund, which subsidizes telephone service for low-income customers ...

A positive externality is created when someone’s private behavior leads to broader social benefits. Common examples include when someone buys a hybrid car, gets vaccinated or stops smoking.