(微觀經(jīng)濟學(xué)英文課件）Chap11 Public Goods and Common Resources

1、( (微觀經(jīng)濟學(xué)英文課件微觀經(jīng)濟學(xué)英文課件Chap11 Public Goods and Chap11 Public Goods and Common ResourcesCommon ResourcesHarcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.Harcourt, Inc. items and derived items copyright 2001 by

2、Harcourt, Inc.Types of Goods Rival?Yes NoYes Private Goods Natural Monopolies No Common Resources Public Goods Excludable?Types of Goods Rival?Yes NoYes Private Goods Ice-cream cones Clothing Natural Monopolies Fire protection Uncongested toll roads No Common Resources Fish in the ocean The environm

3、ent Congested nontoll roads Public Goods National defense General knowledge Uncongested nontoll roads Excludable?Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.nno privite person want to provide the public goods and common resources because it maybe give the positive external

4、ity but they are not payed.nSo need governmentHarcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.1. Public GoodsuSuch as:uNational DefenseuBasic Research (not patent)Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.Cost-Benefit AnalysisuGovernments provide p

5、ublic goods, based upon cost-benefit analysis.uIt estimates the total costs and benefits of a good to society as a whole.The Free-Rider ProblemA free-rider is a person who receives the benefit of a good but avoids paying for it.The government can decide to provide the public good with tax revenue if

6、 the total benefits exceed the costs.The Free-Rider ProblemuSince people cannot be excluded from enjoying the benefits of a public good, individuals may withhold paying for the good hoping that others will pay for it.uThe free-rider problem prevents private markets from supplying public goods.Harcou

7、rt, Inc. items and derived items copyright 2001 by Harcourt, Inc.2. Common ResourcesuSuch as:uClean air and wateruCongested roadsuFish, whales, and other wildlifeTragedy of the CommonsThe Tragedy of the Commons is a story with a general lesson: Common resources tend to be used excessivelyThis create

8、s a negative externality.Question:How to solve the problem?Why Isnt the Cow Extinct?(but why wild elephant face the challenge?)PrivateOwnership and the Profit Motive!Importance of Property RightsThe market fails to allocate resources efficiently when property rights are not well-established.the government can potentially solve the problem.Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.To us?nSome students occupy the seats in th