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Unformatted text preview: good. Work through numerical example given in Hyman. Illustrate "Lindahl equilibrium", prices vary by individual. This is how it's done theoretically. The next chapter discusses the real decision making process. Follow up questions: What is the fundamental problem with public goods that prevents markets from working efficiently? (answer: the free rider problem) How much of a problem do you think this is? Other Market failures--asymmetric information Explanation & discussion Adverse selection Moral Hazard. Printed:...
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This note was uploaded on 07/08/2010 for the course ECON 275 taught by Professor Mcintyre during the Winter '05 term at BYU.
- Winter '05