ECO 2030. Principles of Economics-Price Theory
Market Failure: Public Goods
Four Types of Goods
- Private goods (rival, excludable)
- Public goods (nonrival, nonexcludable)
- Common property resources (rival, nonexcludable)
- Natural monopoly (nonrival, excludable)
Public Goods
- Free rider problem
- Benefit-cost analysis
- Public policy
Common Property Resources
- The tragedy of the commons
- Public policy