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Questions tagged [public-goods]

In economics, a public good is a good that is both non-excludable and non-rivalrous in that individuals cannot be effectively excluded from use and where use by one individual does not reduce availability to others.

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Can the internet be characterized as a public utility?

The idea of what a public utility is, economically, rather than just legally is not a new point of discussion. Philosophers like John Stuart Mill argued for the public provision of water and gas, ...
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How do we determine if wealth will be created or destroyed (and how much) when we want to provide (quasi)public goods?

It seems quite simple under framework of free market, when there are no taxes or subsidies,price celling or price floors, etc, that can mess up the market: if there is profit (or will be, according to ...
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Calculate power for multiple rounds of public goods experiment

I would like to calculate/simulate the a-priori necessary sample size for a repeated public goods experiment. $N$ Participants play $R$ rounds of a public goods game (linear, voluntary contribution ...
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I am looking for texts on public economics

I have recently started a class on policy analysis. I am very new to this field of economics and a lot of the course seems to assume prior knowledge. For our first essay topic we are required to ...
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Aggregating in a Continuum

I am working with the following Economic model of labour and consumption decisions: I have a population whose mass is normalized to one of consumers. They derive utility from consumption $c$,...
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What are the economic advantages and disadvantages in extending the authority of heritage monuments to private corporations?

Recently Indian government decided to give over the authority and responsibility for maintenance of heritage monuments of national importance to private corporations. This gave rise to a debate in the ...
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Is a hyperlink a kind of informational public good?

Links analysis algorithms on the web take the incoming links to a webpage as a sign of its popularity. Given this, can we consider web hyperlinks, in aggregate, as a kind of public good? I am curious ...
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Free rider problem in game theory

Suppose a town is building a bridge, and it costs $B$. There are $n$ villagers. Each village's valuation of the bridge is private information, $v_i$. It is common knowledge that this valuation is ...
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Economic valuation of green spaces using GIS

I was wondering if there are any standard methods that are employed to obtain insight of the economic value of tree cover in a particular area. I assumed using negative difference vegetation index ...
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Asymmetric Public Goods Game Reference request

I am doing a literature search and wondering if anyone has any good references on something related to the following topic: a one shot public goods game with asymmetric costs and benefits. We can ...
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Pigouvian subsidies for non-linear marginal external benefits

Suppose an agent is choosing how much $x$ to consume and $p_x=200$. If the agent's marginal private benefit is $MPB(x)=300/x$ and $x$ takes only integer values, then he will choose to purchase just ...
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Public Goods - Voluntary provision

I am currently reading the book "Microeconomics: Principles and Analysis" by Cowell (2006), page 452-453. e have a two-commodity world, in which there are ${n_h}$ agents (households): commodity 1 is a ...
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Why two goods are of different types of Cross Elasticity if we swap them in formula?

I am using this formula for calculating Cross elasticity of demand: $ E_{XY}^D = \Large\frac{(Q_2^X - Q_1^X)(P_2^Y + P_1^Y)}{(Q_2^X + Q_1^X)(P_2^Y - P_1^Y)} $ If $E_{XY}^D$ > 0 Then goods X and Y ...
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About Lindahl equilibrium and Pareto Optimality

Let an economy with 20 consumers, one private good $x_2$ and one public good $x_1$. The public good is produced using the private good as input with the following technology $x_1=g(z)=z^{1/2}$, where $...
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Why are there fewer high schools than elementary schools?

In nearly every public school district in the U.S., one can observe the following pattern: There are fewer middle schools than elementary schools. And there are fewer high schools than middle schools. ...
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Why is a fire service considered to be a non-rival service, while a highway is considered to be a rival good?

We consider highways to be an example of an impure private good because while it is non-excludable, it is a rival good. That is, another person's consumption (usage) of the highway affects my usage of ...
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Pareto efficient quantity of public good (quasi-linear preferences)

I am doing a question on finding the Pareto efficient quantity of a public good. Instead of using the condition $\sum MRS_i = c'(G)$ where $c(G)$ denotes the cost of the public good, it asks you to ...
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Does the government have a role to play in certifying people's abilities for the labor market?

The nature of information often makes it look like a public good. Is this the case for certification of peoples abilities? Is there a role the government could play in certifying people's abilities? ...
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Are all fixed capital public goods?

fixed capital: any kind of real or physical capital (fixed asset) that is not used up in the production of a product public goods: goods that are non-rival and non-excludable in consumption Both of ...
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Is information technology going to turn most “common goods” into private goods?

Common goods, (not public) are so because they are non-excludable and rival. Often this reflects the impracticality of excluding some users, rather than an absolute impossibility. For example, a park ...