A Deeper Look at Public Goods
What do we mean by “nonexcludable” and “nonrival” when talking about public goods? Public goods challenge markets because it’s difficult to charge non-payers and it
What do we mean by “nonexcludable” and “nonrival” when talking about public goods? Public goods challenge markets because it’s difficult to charge non-payers and it’s inefficient to exclude anyone — so, how do we produce them? Public goods provide an argument for taxation and government provision. But how do we know which public goods should be provided? In this video we cover the free-rider problem and the forced-rider problem in regards to public goods. We also discuss examples of the four different categories of goods which will be covered in future videos: private goods, commons resources, club goods, and public goods.
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I'm not quite sure how Yosemite National Park is a nonrival good. It seems to me if you pack enough people into it, you are bound to impair the utility to both the newcomers and the people already there.
Isn't it true that one of the solutions to the problem raised by public goods is to try to create a balance between the coercive approach (ie. taxation) and a voluntary user pays approach? I suppose that still obviously wouldn't work with asteroid protection, but maybe it would with health care for example. But is health care a public good? - See more at: http://www.mruniversity.com/courses/principles-economics-microeconomics/...