| Public Good |
|
|
| Non
- rivalness / concurrent consumption |
| Vertical summation to find market demand |
| Pricing problem |
| - For efficiency, P = MC of serving = 0, a zero price should be
charged |
| - Free riders can't be excluded, no one is willing to pay for his
enjoyment |
| - As a result, no money can be collected to finance the production
and hence no private firm is willing to produce |
 Traditional view :
government intervention is necessary |
| Modern view :
private provision is possible e.g. tie - in sale, patents, copyrights, etc. |
|
