81. Disgusting

"An example of a positive externality is when you make your yard very pretty. If I walk by, I'll see it and say, 'Oh, it's so beautiful,' and my utility will increase. But, when you work on your yard, you don't think about how other people's utility will increase. You only do it because you like it, and you only consider your own costs."

Said my professor in the lecture I just came back from.

She said it like it was a matter of fact, and nobody openly reacted strangely to this. Personally, I thought her statement was very weird. Of course, she was trying to explain positive externalities, but I can totally imagine an old lady who keeps her yard so that she can brighten the day of those living in her neighborhood. People making their yards pretty also probably do care about what other's think about their yard, and if others like their yard, their own utility will increase. It's more like simultaneous causality.

However, what she said also made me think of how I often just care about my own good and what costs I have to make to achieve personal benefits. How much I may care for others doesn't even come close to how much I care and think for myself. And when I do happen to conveniently do something for others, I subconsciously praise myself for being such a nice person.

Disgusting.