Chapter thirty-Five Public goods 公共物品
Chapter Thirty-Five Public Goods 公共物品
Structure Definition When to provide a public good Efficient provision Private provision: free-riding Variable quantities of public good Efficient amount Free-riding problem How to provide public goods? Demand revelation
Structure Definition When to provide a public good – Efficient provision – Private provision: free-riding Variable quantities of public good – Efficient amount – Free-riding problem How to provide public goods? Demand revelation
Public goods - Definition a good is purely public if it is both nonexcludable(非排他性)and nonrival(非争性) in consumption Nonexcludable s all consumers can consume the good Nonrival a each consumer can consume all of the good
Public Goods -- Definition A good is purely public if it is both nonexcludable (非排他性)and nonrival(非争性) in consumption. –Nonexcludable -- all consumers can consume the good. –Nonrival -- each consumer can consume all of the good
Public Goods -Examples Broadcast radio and tv programs National defense Public highways Reductions in air pollution National parks
Public Goods -- Examples Broadcast radio and TV programs. National defense. Public highways. Reductions in air pollution. National parks
Reservation prices A consumer's reservation price for a unit of a good is his maximum willingness-to-pay for it Consumers wealth is w Utility of not having the good is U(w,0)
Reservation Prices A consumer’s reservation price for a unit of a good is his maximum willingness-to-pay for it. Consumer’s wealth is Utility of not having the good is U(w,0). w