文档介绍：Chapter Thirty-Five
Public Goods
公共物品
Structure
Definition
When to provide a public good
Efficient provision
Private provision: free-riding
Variable quantities of public good
Efficient amount
Free-riding problem
How to provide public goods?
Demand revelation
Public Goods -- Definition
A good is purely public if it is both nonexcludable (非排他性)and nonrival(非争性) in consumption.
Nonexcludable -- all consumers can consume the good.
Nonrival -- each consumer can consume all of the good.
Public Goods -- Examples
Broadcast radio and TV programs.
National defense.
Public highways.
Reductions in air pollution.
National parks.
Reservation Prices
A consumer’s reservation price for a unit of a good is his maximum willingness-to-pay for it.
Consumer’s wealth is
Utility of not having the good is
Reservation Prices
A consumer’s reservation price for a unit of a good is his maximum willingness-to-pay for it.
Consumer’s wealth is
Utility of not having the good is
Utility of paying p for the good is
Reservation Prices
A consumer’s reservation price for a unit of a good is his maximum willingness-to-pay for it.
Consumer’s wealth is
Utility of not having the good is
Utility of paying p for the good is
Reservation price r is defined by
Reservation Prices; An Example
Consumer’s utility is
Utility of not buying a unit of good 2 is
Utility of buying one unit of good 2 at price p is
Reservation Prices; An Example
Reservation price r is defined by
. by
When Should a Public Good Be Provided?
One unit of the good costs c.
Two consumers, A and B.
Individual payments for providing the public good are gA and gB.
gA + gB c if the good is to be provided.