CHAPTER 4B CLUBS

CHAPTER 4B CLUBS - Charles R. Hulten 2009 1 ECON 454...

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Unformatted text preview: Charles R. Hulten 2009 1 ECON 454 CHAPTER 4b PARTIAL PUBLIC GOODS AND CLUBS Charles R. Hulten 2009 2 OUTLINE OF LECTURE PURE PRIVATE, PURE PUBLIC, AND PARTIAL PUBLIC GOODS CLASSIFIED BY DEGREE OF CONGESTION FACILITY COST VERSUS CONGESTION COST OPTIMAL FACILITY (CLUB) SIZE THEORY OF CITIES VOTE WITH YOUR FEET SOLUTION TO DEMAND REVELATION PROBLEM Charles R. Hulten 2009 3 TAXONOMY OF PUBLIC AND PRIVATE GOODS 100% 100% 0% 0% RIVAL GOOD PRIVATE GOOD PUBLIC QUASI GOOD PUBLIC PURE PURE "COMMONS" GOOD "CLUBS" Charles R. Hulten 2009 4 PURE PRIVATE, PURE PUBLIC, AND PARTIAL PUBLIC GOODS CLASSIFIED BY DEGREE OF CONGESTION $ # of users CONGESTION PER USER PURE PRIVATE COST COST GOOD COST PURE PUBLIC PURE PRIVATE PURE PRIVATE PURE PRIVATE PURE PRIVATE PURE PRIVATE PURE PRIVATE PURE PRIVATE GOOD 1 Charles R. Hulten 2009 5 AVERAGE COST OF USING A FACILITY OF GIVEN SIZE DECREASES WITH THE NUMBER OF USERS Average Fixed Cost of Using a Facility Costing $1 Million $ mill....
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CHAPTER 4B CLUBS - Charles R. Hulten 2009 1 ECON 454...

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