Collective Goods

Question 1

pure public examples

Answer 1

eradicating disease, reducing ozone shield thinning

Question 2

pure public strategic implications

Answer 2

prisoner’s dilemma or chicken game may apply

Question 3

pure public provision prognosis

Answer 3

undersupplied and need for public provision, general collective action principles hold for many cases

Question 4

impurely public with some rivalry but no exclusion examples

Answer 4

defending a perimeter, utilizing electromagnetic spectrum

Question 5

impurely public with some rivalry but no exclusion strategic implications

Answer 5

wide variety of game forms apply, including coordination game where some provision is anticipated if the agents can decide who will supply the good

Question 6

impurely public with some rivalry but no exclusion provision prognosis

Answer 6

some supply is anticipated, but the good is overused and undersupplied. Size principles hold, but not all the composition principles hold, some public provision is needed.

Question 7

impurely public with full exclusion but no rivalry examples

Answer 7

early warning system, hurricane tracking and intensity alerts

Question 8

impurely public with full exclusion but no rivalry strategic implications

Answer 8

exclusion eliminates strategic considerations and forces some individuals to reveal a preference. Those whose willingness to pay is too small are excluded despite the absence of crowding costs.

Question 9

impurely public with full exclusion but no rivalry provision prognosis

Answer 9

inefficiency results because people with positive benefits are excluded. size principles remain a concern, but composition principles are less germane. Subsidies to the poor may reduce inefficiencies

Question 10

club goods examples

Answer 10

transnational parks, remote sensing services

Question 11

club goods strategic implications

Answer 11

in clubs, there are no strategic implications. Members cooperate to provide a shared good, where visits are monitored. Tolls finance the shared good.

Question 12

club goods provision prognosis

Answer 12

optimal provision results as crowding externality is internalized through tolls. Taste differences are revealed through visitation rates and are charged accordingly.

Question 13

joint products examples

Answer 13

military alliance, preservation of rain forests

Question 14

joint products strategic implications

Answer 14

a wide variety of game forms are relevant including assurance, depending on the mix of excludable to total benefits.dominant strategy may even be to to contribute if share of private benefits is sufficiently large.

Question 15

joint products provision prognosis

Answer 15

ratio of excludable to total benefits is the key consideration. As the ratio approaches 1, efficiency results. General Collective Action principles hold more fully as this ratio approaches 0. institutional design must emphasize these excludable benefits.

Question 16

open access commons examples

Answer 16

fishery, hunting ground

Question 17

open access strategic implications

Answer 17

prisoner’s dilemma and a dominant strat to exploit the commons

Question 18

open access provision prognosis

Answer 18

size principles apply, however, exploitation is turned on its head- large exploits the small.