![]() For example, the fact that many other people own the same smartphone as you, granted that that smartphone is embedded in a certain network, may increase the value or usefulness of your smartphone. Network externalities (and economies of scale): If others buy a product that is interconnected in a network, that can confer external benefits to you.These are examples of positive externalities that affect an uninvolved third party as a result of the economic activities of others. They also benefit from the fact that a bakery is so close to where they live (Gruber, 2019). Bakeries spreading their great smell: If someone opens a bakery on the first floor of an apartment building, the people living in the apartment above receive the benefit of enjoying the smell of fresh pastries every morning.The restoration of historic buildings, therefore, gives rise to all sorts of positive production externalities. ![]() Because of this, such restorations can also confer economic benefits to surrounding businesses. It increases the economic value of nearby properties and encourages more people to visit the area. ![]()
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