Much to the chagrin of some Americans, conventional light bulbs were effectively banned in 2014 leaving only compact florescent lights (CFLs) on store shelves. The ban was encouraged, in part, by the makers of the more expensive CFLs. Which concept is best captured in this story?

Question

Quizplus · Accepted Answer

This story highlights the concept of diffused costs and concentrated benefits. The ban on conventional light bulbs was driven in part by the interests of CFL manufacturers who stood to benefit from the shift in consumer behavior. The cost of this shift, however, was diffused across all consumers who were forced to switch to more expensive CFLs.

Much to the Chagrin of Some Americans, Conventional Light Bulbs