Adjective

internal (comparative more internal, superlative most internal)

1. inside of something

   We saw the internal compartments

2. within the body

   Her bleeding was internal

3. concerned with the domestic affairs of a nation, state or other political community.

   The nation suffered from internal conflicts

4. concerned with the non-public affairs of a company or other organisation

   An internal investigation was conducted

Synonyms

• inner
• interior
• intern, interne

Antonyms

• external
• exterior

Derived terms

• internalism
• internalist
• internality
• internalize
• internally
• internal link

An internality is a term used in behavioral economics to describe those types of behaviors that impose costs on a person in the long-run that are not taken into account when making decisions in the present. Classical Economics discourages government from creating legislation that targets internalities, because it is assumed that the consumer takes these personal costs into account when paying for the good that causes the internality. For example, cigarettes should be taxed because of the negative consumption externalities that they impose, such as second-hand smoke, not because the smoker harms him or herself by smoking. This is because the economic assumption of rationality would pose the argument that the smoker has taken into account the damage that smoking does to himself, but still desires the cigarettes more than the long-term health.

Categories: Consumer behaviour |