The externalities of billboards

Foundation for Research on Economics & the Environment
Posted: November 13th, 2008 by Thomas L. Knapp
Author: John A. Baden, Ph.D.

“It was 40 years ago in Wall, SD, and Josh was driving to Seattle. Every few miles, often less, he saw a sign advertising Wall Drug. One proclaimed, ‘Everything the traveler wants is in Wall Drug.’ This was in keeping with the store’s philosophy: ‘…you can reach out to other people with something that they need!’ Josh stopped at Wall Drug and asked to buy a can of orange spray paint. ‘Sorry,’ he was told, ‘we don’t have it.’ Josh asked to speak with the owner, Ted Hustead, and was shown upstairs to his office, where he explained what he wanted. Josh told Mr. Hustead that he saw an excess of signs advertising Wall Drug. Hustead seemed pleased and asked why Josh wanted the orange paint. Josh said he admired the scenery of Central SD and found the Wall Drug signs distractive and offensive. He also noted that many signs, not all advertising Wall Drug, suffered from bullet holes. The orange paint was to spray bulls-eyes on the worst of the Wall Drug signs. Hustead wasn’t amused.” (11/12/08)

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