PP 1.29 - cannot be excluded from enjoying Nonrivalrous(one...

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Collective goals are benefits for groups For some goals, goal is worth more than share of the costs People are primarily self interested (motivated solely by their own individual costs and benefits) Cooperation Problem of Hume’s Marsh Benefits of cooperation outweigh the costs With more people, the benefits aren’t as clear Small probability of being the group as the size increases Both Hume’s marsh and common defense are examples of public goods Public goods are nonexcludable (if the good is supplied, those who did not contribute
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Unformatted text preview: cannot be excluded from enjoying) Nonrivalrous (one person’s use does not diminish the supply available for others) Free rider problem- Like national defense, infrastructure, education, health care, etc. Private goods are excludable- Excludes someone else from having it There can be a market for private goods with prices Difficult to have a market for public goods...
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