Three “statical” types of these phenomena are classified in a 1958 paper by Francis M. Bator. To rebut an example created by James Meade, the “ownership” type of these phenomena was analysed by Steven Cheung in a classic study of orchards titled “The Fable of the Bees.” A 1985 paper by Michael Katz and Carl Shapiro discussed how telephone infrastructure is linked to the “network” type of these phenomena. (-5[1])The presence of these phenomena does not stop (*) Pareto optimality holding if transaction costs are zero, (10[1])according to the Coase theorem. These phenomena (10[1])can be corrected using a Pigovian tax, and are the difference between social and private costs. Water pollution exemplifies the “negative” type of, for 10 points, what market failures in which market activity imposes costs or benefits on third (10[1])parties? ■END■