EC120 Lecture Notes - Lecture 18: Banff National Park, Poverty Reduction, Marginal Utility
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Can a person be prevented from acessing it. Practicality of exludability is an issue - can people be prevented from fishing. Is the good rival in consumption: does the use of the good by one person limit use/value by others? o. Fire protection, radio/tv broadcasts, creation of new technology. Public goods o non-excludable, non-rival: national defence, poverty reduction o. Environmental damage, fishing, national parks: use involves a negative externality. Can be prevented from accessing it, it is effectively not rival, one more person generates a small marginal cost. Pure public goods are non-rival and non-excludable. Benefits from public good provision vary in the population. For a given quantity, add up to marginal benefit to everyone in society. A study comparing the costs and benefits to society of providing a good or serivce. Example: satellite tv, when you access it, it does not stop anyone else from accesing it. Solution may government provision to ensure allocative efficiency.
