This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: SIGN I N AFTER CLASS Public F inance
Ma rket Failu res
Monopoly Externalities Negative Pollution Second hand smoke Drunk drivers Positive More t rees Vaccinations Public goods Non-excludable Nonr ival rous i.e. public parks M ili tary National defense Air Rival rous Goods I f one person uses a good another person is prevented from using it Consumption exhausts stock of a r ival rous good Scarcity i.e. cupcake cake I f a good is r ival rous, Efficient to charge a price Nonr ivalrous Goods Consumption doesn't exhaust stock of good i.e. TV Internet Ar t Charging a price would discourage consumption without any increase in benefit Excludable Goods Lim itat ions on who can receive the good i.e. UNC basketball t ickets Airline f l ight Concert Movies Pu re P r ivate Good Excludable Rival rous Efficiently provided by market Collective Good Nonr ival rous Excludable Ar t ificial scarcity Common Resource Rival rous Nonexcludable Regulation, property r ights Pu re Public good Nonexcludable Nonr ival rous ...
View Full Document