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public_goods-ho_003

public_goods-ho_003 - Common-Pool Resources Public Goods...

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Common-Pool Resources Public Goods Common-Pool Resources (Ch 34) and Public Goods (Ch 36)
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Common-Pool Resources Public Goods Final Exam Details 20 hours of OH between now and final Review Session: Saturday, 3/12, 4-6pm, NH 1006 Final exam: Tuesday, March 15, 12-3pm, here Format: 12 - 15 MC, 2 BB questions, < 3 hours worth Bring: pink ParScore scantron, blue-book (large), pencil, pen, thinking cap Don’t bring: calculator, electronic devices, books, notes, etc.
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Common-Pool Resources Public Goods Final Exam Details Focus of coverage: Equilibrium (16), Monopoly (24,25), Oligopoly, (27), Exchange/General Eq. (31), Externalitites (34), Public Goods (36) For the most part: only cumulative to the extant that new material builds on old How to study: do workouts/quizzes/practice problems, come to OH with questions Next Thursday’s class: synthesis. Will revisit important topics/messages Grading: see syllabus
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Common-Pool Resources Public Goods Clicker Vote The Santa Barbara Bowl (SBB) holds outdoor music events ( M ), earning $2 of revenue from each concert and with total costs of c M ( M ) = M 2 / 4 for M concerts. Ursula is a writer who lives right next to the SBB and who sells her novels on the competitive market at the price of p N = 3. The music that Ursula overhears from the SBB help her concentrate and it costs her c N ( N , M ) = N 2 / 8 - M to write N novels. Which tax/subsidy would result in the socially optimal allocation? A) subsidize SBB 1 per concert B) subsidize Ursula M per novel C) tax Ursula 1 per novel D) tax SBB M per concert
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Common-Pool Resources Public Goods Clicker Vote The Santa Barbara Bowl (SBB) holds outdoor music events ( M ), earning $2 of revenue from each concert and with total costs of c M ( M ) = M 2 / 4 for M concerts. Ursula is a writer who lives right next to the SBB and who sells her novels on the competitive market at the price of p N = 3. The music that Ursula overhears from the SBB help her concentrate and it costs her c N ( N , M ) = N 2 / 8 - M to write N novels. Which tax/subsidy would result in the socially optimal allocation? A) subsidize SBB 1 per concert B) subsidize Ursula M per novel C) tax Ursula 1 per novel D) tax SBB M per concert At the social optimum, the external MC imposed by SBB on Ursula is - 1. Subsidizing SBB by 1 for every concert internalizes this externality.
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Common-Pool Resources Public Goods Common-Pool Resources and Public Goods What do these goods/resources have in common? Fisheries (Public) freeways National Security Broadcast radio/tv Clean air National parks If anyone has access to the resource or can consume the good, then everyone can. E.g. you can’t prevent someone from breathing air or receiving radio waves.
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