27 votes

How do economists explain why people contribute to Wikipedia?

Voluntarily contributing to a public good (such as Wikipedia) is a strong social norm. The tendency to follow such norms even if this is costly in the short run has developed over humans' evolutionary ...
VARulle's user avatar
  • 6,805
23 votes

How do economists explain why people contribute to Wikipedia?

I wouldn't underestimate the role of learning by answering. Drafting a significant text typically forces a person to put their thoughts in order, to engage in research, and then to structure the ...
Steve's user avatar
  • 626
15 votes

How do economists explain why people contribute to Wikipedia?

tl;dr: There could be multiple explanations depending on how you want to treat Wikipedia. If you want to treat Wikipedia as public good where everyone contributes a small part towards its creation and ...
1muflon1's user avatar
  • 56.4k
10 votes

Why are there fewer high schools than elementary schools?

Two relevant economic principles are: Economies of scale: These are a more significant issue for middle and especially high schools which have a greater need for specialist teachers, as others have ...
Adam Bailey's user avatar
  • 8,369
8 votes

How do economists explain why people contribute to Wikipedia?

Look at the data For starters, the obvious thing is to look at the data about the self-reported reasons for contributing to wikipedia (and I'm surprised that neither the question asker nor most of the ...
Peteris's user avatar
  • 488
8 votes
Accepted

Is climate change an economic question?

Climate change in itself, its measurement and the fact that it is happening, and modeling its speed or trying to discover its causes (e.g., carbon emissions, methane emissions and so on) is not an ...
1muflon1's user avatar
  • 56.4k
7 votes

If public roads are public goods, in what way are they non-rivalrous?

It depends actually a non-congested road can be considered non-rivalrous as when you drive there you don’t really reduce the enjoyment or marginal utility of other people driving them. However, once ...
1muflon1's user avatar
  • 56.4k
6 votes
Accepted

Are social goods and public goods the same thing?

I guess it might depend on the author. Here's another classification: The classifications of public goods associated to agriculture identify two main categories: environmental goods and non-...
the gods from engineering's user avatar
5 votes

Is a hyperlink a kind of informational public good?

In the Samuelson's definition of public good, the good must be non-excludable and non-rivalrous. Hyperlinks (if public and pointing to public pages) are non-excludable, and --to the condition of not ...
Adrien Pacifico's user avatar
5 votes
Accepted

Nash equilibrium - mistake in proof of paper?

The objective is to show that, as long as $f'(n\hat\theta)\ne \alpha$, a firm can always engineer a package $(p',\hat\theta')=(p+\Delta p,\hat\theta+\Delta \hat{\theta})$ such that (i) a caring ...
GuiWil's user avatar
  • 887
5 votes
Accepted

Why is a fire service considered to be a non-rival service, while a highway is considered to be a rival good?

One common definition of a non-rival good (see here and (A)) is a good for which the consumption of additional units involves zero marginal social costs of production. On this definition the service ...
Adam Bailey's user avatar
  • 8,369
5 votes

How does the Austrian school address the free-rider problem for public goods like national defense?

Austrian School, as every other school including let's say Marxist School, as such is a set of methodologies not necessarily policy conclusions about what policies ought to be pursued (see Brue & ...
1muflon1's user avatar
  • 56.4k
4 votes

Why are there fewer high schools than elementary schools?

Interesting question..... I attended public schools at all three levels and they were less than a mile from where I lived --- the elementary school and the high school were less than half a mile away, ...
Michael Hardy's user avatar
3 votes

Which parts of health care can be considered market failures?

The most common one I have considered is health insurance as a private market. It becomes a case of the "market for lemons", where in this case the `lemons' are the people seeking insurance. ...
RegressForward's user avatar
3 votes
Accepted

Why is Walras equilibrium inefficient when we are dealing with public goods?

In a competitive market for a private good (y) individuals may consume different quantities but the equilibrium condition requires that: $$ \frac{\frac{\delta u^{i}}{\delta y}}{\frac{\delta u^{i}}{\...
Ali's user avatar
  • 852
3 votes
Accepted

Pareto Efficient level of Public Good

The social welfare maximizing outcome you computed (by equating the sum of marginal benefits to marginal cost) is just one of the Pareto efficient outcomes. Although maximization of joint utilities is ...
Herr K.'s user avatar
  • 15.4k
3 votes
Accepted

Why two goods are of different types of Cross Elasticity if we swap them in formula?

The cross elasticity of demand $E_{XY}^D$ is defined as the percent change in quantity demanded for X divided by the percent change in price of Y, holding the price of X fixed. The problem with your ...
Paul's user avatar
  • 503
3 votes

Pareto efficient quantity of public good (quasi-linear preferences)

I don't think it is true in a standard public good economy the question is referring to. Consider the following counterexample: Suppose $I = \{1,2\}$ and utility of the individual $i$ depends on his ...
Amit's user avatar
  • 8,466
3 votes
Accepted

Is GDP biased against public goods?

Is GDP biased against public goods? There is no evidence GDP is biased against public goods. Moreover, that twitter user you reference clearly did not understand what public goods are because the ...
1muflon1's user avatar
  • 56.4k
3 votes
Accepted

Efficiency Criteria to provide a public good?

A situation in which the public good is not provided is inefficient; it is possible to make both consumers better off. To see this, let $c_1$ and $c_2$ be to numbers such that $c_1+c_2=100$, $c_1<...
Michael Greinecker's user avatar
3 votes

The present value of exterminating the human race in 200 years: Can I afford it? Can you?

The question of the appropriate discount rate for assessing projects with very long-term consequences is extremely important (although framing it in terms of "the present value of exterminating ...
Adam Bailey's user avatar
  • 8,369
3 votes

What are examples of public goods where marginal individual contributions tend to zero?

Two examples that I can think are: $\Rightarrow$ A person in Delhi contributing money for the construction of a well in Nairobi $\Rightarrow$ A person spending time at a teaching programme for ...
Agrim Rana's user avatar
2 votes
Accepted

Is information technology going to turn most "common goods" into private goods?

Many obstacles to converting common goods into private goods are legal or normative rather than technological. For example, the technology necessary for congestion pricing of traffic is long ...
BKay's user avatar
  • 16.3k
2 votes
Accepted

Aggregating in a Continuum

To obtain $\frac{\partial y}{\partial z_n}=0$, you implicitly assume that each consumer takes its own skill level as given. And in such a case, in reality the consumer optimizes with respect to labor ...
Alecos Papadopoulos's user avatar
2 votes
Accepted

Free rider problem in game theory

Let $b_i\in\{0,B\}$ be $i$'s strategy. Then $i$'s payoff depends on the strategy profile $(b_i,b_{-i})$, where $b_{-i}=(b_j)_{j\ne i}$. \begin{equation} u_i(b_i,b_{-i})= \begin{cases} v_i&\text{...
Herr K.'s user avatar
  • 15.4k
2 votes

Is a smartphone app(Non premium or subscribed service like Netflix) a public good?

Am I correct to say that the app is non-excludable? I am sorry to say but this is wrong. Just assume google removes the application from the store. All android users would be excluded. There are many ...
Levittstyle's user avatar
2 votes
Accepted

Are there any analysis of what is the net benefit of NASA program to US economy?

I had a look, and there's not a alot, and not much that is current. The problem is, the question (What is the impact of NASA on the economy?) is too big and too difficult to measure. I think you'll ...
anguyen1210's user avatar
2 votes
Accepted

Simple General Equilibrium Model of Public Goods: Intuition?

You can take MRS as the willingness to pay (Take the other good in MRS as money). If the good is a private good that costs 3, your willingness to pay should be 3 because you are buying it for yourself....
Alex Wang's user avatar
  • 340

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