Lecture 14public goods and externality(微观经济学(浙大- 叶剑亮))3.pptVIP

Lecture 15: public goods and externality Content Public goods Subscription Efficient provision of public goods Public choice Externality What’s externality? How to solute it? What’s the efficient condition with externality. Public goods Subscription Public goods Subscription Excludability is the property problem Rivality is the physical problem. Y.Barzel(1989), Public domain Price determined by the property. Public goods Efficient provision of public goods Discrete case: xi : private goods G: public goods gi: i’s contribution to public goods ui(G,xi), utility function Public goods