In conclusion, following the
explanation of negative externalities, we can consider possible options to
reach a socially optimum combination of price and quantity, by considering
feasible ways in which governments can intervene in cases of surplus losses.
However, we must note that government intervention operates from an external
standing point, which would make them extraneous to some effects and
information of negative externalities generated in the market. Therefore,
private bargaining would be considered a better internal intervention that
would allow optimum allocation of resources.