November 12 Lecture - Collective Action Market failure as a reason to have public that is coercive public goods market failure people get what they dont

November 12 Lecture - Collective Action Market failure as a...

This preview shows page 1 - 2 out of 3 pages.

November 12, 2012 Collective Action Market failure as a reason to have public that is coercive; public goods market failure: people get what they don’t pay for if good is nonexcudable, they will tend to be underprovided if everyone is acting in own personal interests as free riders; people not making contributions to a collective effort because they’d rather have someone else contribute How do we get goods produced and paid for? Either charge for use, which is inefficient, because people ought to pay 0 for use but producers also get paid nothing; can’t collect from beneficiaries for use because it’s non-excludable Things that aren’t done governmentally, private groups produce their own goods Any group of people who have a common interest and where everybody gets it or nobody gets it We can define a group of people or other entities based on their common interests who would like to get something that’s non-excludable among them Group benefits are public goods (reputation of a university, victory for a sports team or army, financial success for a partnership, electing a candidate for his supporters, subsidies for farmers, and marijuana legalization for pot-smoker) How well does each group do at mobilizing its members? Is it organized or scattered?
Image of page 1
Image of page 2

You've reached the end of your free preview.

Want to read all 3 pages?

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors