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rudy / Rudy
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2024-07-19 22:59:41

rudy on Nostr: "A pure public good has two salient characteristics: jointness of supply and the ...

"A pure public good has two salient characteristics: jointness of supply and the impossibility or inefficiency of excluding others from its consumption, once it has been supplied to some members of the community (Musgrave, 1959, pp. 9–12, 86; Head, 1962). Jointness of supply is a property of the production or cost function of the public good. The extreme case of jointness of supply is a good whose production costs are all fixed, and thus whose marginal production costs are zero

People can be excluded from the benefits from viewing a statue placed within a private gallery if they do not pay to see it. But people cannot be prevented from viewing a statue or monument placed in the central city square. For many public goods, the exclusion of some members of the community from their consumption is impossible or impractical. Failure of the exclusion principle to apply provides an incentive for noncooperative, individualistic behavior"
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