oneself as opposed to effects on others. Further research is desirable on ethical issues, their relationship to externality causation, and potential for externality reduction through higher ethical standards.
As discussed earlier, the aggregation of microlevel externalities leads to larger or macrolevel issues. Little research has focused on this aggregation. Suggestions for future research include identification of characteristics of aggregation of first-, second-, and third-party externalities (e.g., the number of externalities and the speed of aggregation) and their measurement. Finally, once characteristics have been identified and measured, their societal impact and the resulting societal response could be studied.
Further discussion is suggested regarding exchanges resulting in production, distribution, and consumption: types of exchanges, actors involved, subsequent resulting externalities (if any), and responding parties and their responses.
Additional discussion can also be given to goals of exchange, goal modification to meet short-term objectives, and the impact of this phenomenon on externality-creating exchanges.
The directions for future research are innumerable. In this chapter, we have focused on laying out what we feel to be a logical foundation from which externalities research can be launched: that of the exchange perspective and its promise for creating a better understanding of marketing and its effects.
Dennis E. Garrett
If the exchange area is to become more important in marketing, scholars need to provide various theoretical perspectives that describe, explain, and have the potential for predicting marketing phenomena. Exchange theory has the potential to provide a body of knowledge to understand the dimensions of exchange transactions in society. This chapter on the externalities of exchange provides a significant contribution in the attempt to make exchange a central theory of marketing.
The worth of the concept of externalities in exchange transactions is evident