Collective Action

Collective Action

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: nition 2: a good is said to be "non ­excludable" if its consumption by one member of a group makes it available to the other group members, i.e. people cannot be excluded from consuming it.  ­ Pure Private Good: rival + excludable  ­ Pure Public Good: non ­rival + non ­excludable  ­ Commons: rival + non ­excludable  ­ Clubs: non ­rival + excludable PUBLIC GOODS ARE UNDERSUPPLIED Individual optimum: MBi = MC Social optimum X MBi = MC Example. Two mayors need to decide whether they should construct a bridge to connect the villages they represent. The construction of the bridge will benefit each...
View Full Document

This document was uploaded on 03/10/2014 for the course AECO 1330A at Sciences Po.

Ask a homework question - tutors are online