Public Goods_1

Public Goods_1 - PAM2040 Mostly Public Goods Extension...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
PAM2040 Mostly Public Goods
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Extension: Ethics and Regulation Assumption that BSP is taking costs on steel plants into account Company profits / economic growth part of SWF What if the social planner can’t credibly commit to this? Ex: What should developing countries do about air pollution?
Background image of page 2
Extension: “Internalities” Information problems can arise with one person Do I understand the consequences of my decision for my future utility? Rational Addiction vs. Impulse Control Example: Cigarette Smoking
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Back to Coase. . Why is it unlikely that a group of fisherman can compel a steel plant to internalize the externality?
Background image of page 4
What is a Public Good? (exchange) Private Good: Producer of x determines quantity available to consumer of x Public Good: Producer of x cannot control quantity available to consumers of x Is x excludable?
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
(consumption) Externalities: Does my consumption of x affect your consumption of y ? Public Good: Does my consumption of x affect your consumption of x ? Is x
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 23

Public Goods_1 - PAM2040 Mostly Public Goods Extension...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online