Externalities at a Festival

In India, there were people boarding a ferry to go to an island. This week there is a major holiday for the Hindu religion, and these people were going to the  Gangasagar island to take “holy dips”. Everything seemed fine, that is, until the stampede occured. This is where the externality comes in. There was a stampede that killed seven people and injured nine people. These people were just trying to get onto a ferry, and they were trampled by a stampede. What were the chances of that?

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2 Responses to “Externalities at a Festival”

  1. Sami,
    Thought your post was extremely insightful. Now I know the dangers of taking holy dips in my country during a festival. I will try my best to refrain myself from being a part of a stampede. Posts like these make the world a safer and a better place. The first step is awareness.

  2. Sami, an interesting application of externalities to a festival. What are the third party costs? Your diagram is appropriate, but you need to apply it to the actual case study.


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