<p>Demerit goods are goods where it is agreed by society that consumption is <strong>harmful for the consumer</strong> yet it is still consumed due to bounded rationality or because you disagree with society while negative consumer externalities occur when actions of a consumer is <strong>harmful for society</strong>.</p>

<p><strong>Goods that are demerit but may not have negative consumer externality:</strong></p>

<p>Any type of unhealthy food. E.g. cinnabuns.</p>

<p>Carcinogenic stuff, alcohol, etc.</p>

<p>Basically anything you regret having consumed a few hours later.</p>

<p>If consumption of these goods do not harm society, then there are no negative externalities, as long as no one else cares about the consumer :'(</p>

<p><strong>Good that may have negative consumer externality but may not be a demerit good:</strong></p>

<p>Loud music</p>

CC BY-SA 3.0
2016-08-06T06:58:12.397Z
Thanks denesp. What about goods whose markets may have negative consumer externalities but aren't demerit goods?
BCLC
CC BY-SA 3.0
2016-08-10T12:09:05.623Z
I'm gonna edit your answer and see how community responds. Thanks! ^-^
BCLC
CC BY-SA 3.0
2016-08-04T07:50:45.747Z
2016-08-10T12:45:00.317Z
2016-08-10T12:45:00.317Z
Giskard
<p>The example I was given for each was cigarettes.</p>

<ol>
<li><p>What market may have negative consumer externalities but is not a market for a demerit good?</p></li>
<li><p>What is a type of demerit good that may not have a negative consumer externality?</p></li>
</ol>

<microeconomics><consumer-theory><externalities>
Negative consumer externality vs demerit good - what's the difference?
BCLC
# Negative consumer externality vs demerit good - what's the difference?

(Asked by: username_0 on 2016-08-04)

The example I was given for each was cigarettes.

1. What market may have negative consumer externalities but is not a market for a demerit good?
2. What is a type of demerit good that may not have a negative consumer externality?

**Tags:** microeconomics, consumer-theory, externalities


---

## 1 answers

### Answer by username_1 on 2016-08-04. Score: 3 | Accepted answer

Demerit goods are goods where it is agreed by society that consumption is **harmful for the consumer** yet it is still consumed due to bounded rationality or because you disagree with society while negative consumer externalities occur when actions of a consumer is **harmful for society**.

**Goods that are demerit but may not have negative consumer externality:**

Any type of unhealthy food. E.g. cinnabuns.

Carcinogenic stuff, alcohol, etc.

Basically anything you regret having consumed a few hours later.

If consumption of these goods do not harm society, then there are no negative externalities, as long as no one else cares about the consumer :'(

**Good that may have negative consumer externality but may not be a demerit good:**

Loud music

> **Comments:**
> **username_0**: Thanks denesp. What about goods whose markets may have negative consumer externalities but aren't demerit goods?  
> **username_0**: I'm gonna edit your answer and see how community responds. Thanks! ^-^  

---

