Public Goods

Question 1

Is allocating property rights to reduce externalities a general solution

Answer 1

The argument of Coase’s followers is that incomplete markets occur because of incomplete property rights

Allocating property rights leads to a decentralised solution to problems of externalities

if property rights are given to the victims of pollution, then polluters must pay them

Or if polluters have the property rights then the victims can pay him to not pollute

Question 2

Is allocating property rights to reduce externalities a general solution

Answer 2

The argument of Coase’s followers is that incomplete markets occur because of incomplete property rights

Allocating property rights leads to a decentralised solution to problems of externalities

if property rights are given to the victims of pollution, then polluters must pay them

Or if polluters have the property rights then the victims can pay him to not pollute

Question 3

Question 4

Open access common property

Answer 4

Question 5

Question 6

Public good

Answer 6

commodity or service whose consumption by one person does not exclude others from also using it

By contrast private goods are rival in consumption

Too little production may occur when producers can’t restrict access to a public good

A public good produces a positive externality and excluding anyone from consuming a public good is inefficient

Question 6

Public good

Answer 6

commodity or service whose consumption by one person does not exclude others from also using it

By contrast private goods are rival in consumption

Too little production may occur when producers can’t restrict access to a public good

A public good produces a positive externality and excluding anyone from consuming a public good is inefficient

Question 7

Answer 7

Question 8

Answer 8

Question 9

Answer 9