A procedure that eliminates or internalizes externalities without government action other than defining property rights is called

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A private remedy is a solution to an externality that is managed by private individuals or businesses through the property rights system. An example of a private remedy is when a property owner installs sound or pollution barriers to protect themselves from the negative effects of nearby activity. No government intervention is necessary, and the externality is internalized.

A Procedure That Eliminates or Internalizes Externalities Without Government Action