Public Goods_1 - PAM2040 Mostly Public Goods Extension:...

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PAM2040 Mostly Public Goods
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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?
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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
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Back to Coase. . Why is it unlikely that a group of fisherman can compel a steel plant to internalize the externality?
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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?
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(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
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Public Goods_1 - PAM2040 Mostly Public Goods Extension:...

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