A New Perspective of Correcting Consumption Externality under Expectation Theory

The existence of consumption externality,either positive or negative,causes that resources cannot reach Pareto optimal state and that the whole national revenue reduces,correspondingly,the whole social welfare decreases.By means of expectation theory,we can design a theory to solve consumption externality,further refine positive and negative external correction mechanism of consumption externality,and provide a new perspective for developing a correcting consumption externality.