Acceptable logotypeECO 2030. Principles of Economics-Price Theory

Market Failure: Public Goods

Four Types of Goods

  1. Private goods (rival, excludable)
  2. Public goods (nonrival, nonexcludable)
  3. Common property resources (rival, nonexcludable)
  4. Natural monopoly (nonrival, excludable)

Public Goods

  1. Free rider problem
  2. Benefit-cost analysis
  3. Public policy

Common Property Resources

  1. The tragedy of the commons
  2. Public policy