Public_Goods - Public Goods Why Should the Government...

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Public Goods Why Should the Government Provide Public Goods?
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What are pubic goods? Roads, bridges, sewers, parks, schools, police, fire, judicial services, national defense, environmental protection, disease control, elections, financial regulation, care for disabled, higher education, wildlife management, border control, passports, zoos, basic research, economic statistics, census, nuclear waste disposal, food safety, intellectual property protection, legal infrastructure, etc.
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Public goods Shared consumption Non-rival MC of another consumer = 0 Costly to prevent consumption without payment Non-exclusion MC of preventing another consumer = very high or impossible
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Example: private firm seeks profits from stocking Coho salmon in Lake Michigan Value to consumers > costs of provision Thus, it is efficient to stock the lake Will consumers pay? They cannot be excluded from fishing
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Public_Goods - Public Goods Why Should the Government...

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