Conclusion from the editors
Coase, in his seminal article titled “The Problem of Social Cost” (1960), notes that firms seek to externalize costs involving the consumption of public goods, while focusing on internalizing profits. Coase also identified four solutions for identifying externalities: (1) market transactions, (2) firm-based administrative decisions, (3) government regulation and (4) do nothing. Given the gap in global governance, the fast fashion industry has chosen the “do nothing” approach to dealing with externalities. Instead, the focus has been on internalizing profits through enticing marketing techniques to drive consumers into large retail stores in prominent business districts, while ...
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