Lecture 9 Econ April 6

Lecture 9 Econ April 6 - Lecture 9 Econ April 6: Public...

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Lecture 9 Econ April 6: Public goods and common resources Good characteristics: 1) Excludability; can a person be prevented from consuming the good? 2) Rivalry in consumption (subtractability)- does one person use of the good reduce another persona’s ability to use it. Rival in consumption > yes no Excludable yes Private good, pod candy Club good(mature monopoly)Satellite TV, PRIVATE PARKS Excludable no Common resources, fishers, WILD LIFE. Public good: over the air TV , tornado screen, national defiance public good are not necessarily provided by the government(OTA tv) or anybody at all(Asteroid protection) Boundaries between characteristics are fuzzy : Ex: Roods -Public roods: non-excludable If rush hour(congested) Rival in consumption =>Common resource . Uncongested=>non rival =) public good If congested=>rival=>private good. If uncongested=> non-rival=>club good Ex: fish in ocean: common resource Can be made excludable: more patrol ships -Used to be non-rival in consumption (population of human small) we will look at non excludable goods Non-excludable goods cant be produced by market in proper amount Why? Externalities Public good: positive externality
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This note was uploaded on 09/29/2011 for the course ECON 101 taught by Professor Pgking during the Spring '08 term at S.F. State.

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Lecture 9 Econ April 6 - Lecture 9 Econ April 6: Public...

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