A Deeper Look at Public Goods

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  • Опубликовано: 15 авг 2024
  • Description: What do we mean by “nonexcludable” and “nonrival” when talking about public goods? Public goods challenge markets because it’s difficult to charge non-payers and it’s inefficient to exclude anyone - so, how do we produce them? Public goods provide an argument for taxation and government provision. But how do we know which public goods should be provided? In this video we cover the free-rider problem and the forced-rider problem in regards to public goods. We also discuss examples of the four different categories of goods, which will be covered in future videos: private goods, commons resources, club goods, and public goods.
    Microeconomics Course: bit.ly/20VablY
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Комментарии • 50

  • @lorenaanais
    @lorenaanais 6 лет назад +45

    19 free riders disliked this

  • @alihamdani6605
    @alihamdani6605 4 года назад +14

    I've just watched a public goods explaining public goods. So, am I a free-rider to MRU?

  • @jamesk7156
    @jamesk7156 5 лет назад +4

    Eye opening! Wow! I've seen 50+ of the Marginal Revolution videos and this has to be the best. Thanks guys!

  • @tinygoof
    @tinygoof 8 лет назад +15

    That was really good and helpful! Thanks

  • @dumky
    @dumky 9 лет назад +7

    You can fund missile defense via Kickstarter.

  • @JaronBTW
    @JaronBTW 8 лет назад +3

    A major part being left out is the ability of governments to fund themselves by simply creating contracts with private entities and paying them with new money from their national centralized bank or through the world bank. In the case of public good spending then, as long as measures are made to control inflation with a consumer inflation agency, then there is no need to collect any taxes for a project like asteroid deflection and whoever steps up to do the work is handsomely rewarded.

  • @mr.johnson6199
    @mr.johnson6199 4 года назад +10

    Pro-Tip:
    watching this video at 1.25x speed makes it easier to understand.

    • @afishwithagun2190
      @afishwithagun2190 4 года назад +1

      Thanks 👌

    • @wazii86gr87
      @wazii86gr87 4 года назад +1

      @@afishwithagun2190 I've literally been doing this for >70 of their videos lol

  • @robindragirl
    @robindragirl 7 лет назад +4

    You explain the best!

  • @rustydawgt
    @rustydawgt Месяц назад

    Easy to fix for the forced rider dilemma, just tax negative externalities and land for the services it receives.

  • @John-tx5or
    @John-tx5or 5 лет назад

    Every Able Person should have to contribute.

  • @ThePeterDislikeShow
    @ThePeterDislikeShow 4 года назад +1

    Does asteroid defense actually exist beyond the research phase?

  • @mrheffern
    @mrheffern Год назад

    Why didn't they bring up the fact that private lighthouses existed. Non excludable and non rival. Shouldn't be possible. But it happened. Maybe public good theory isn't iron clad after all.

  • @carnivalcadaver69
    @carnivalcadaver69 5 лет назад +1

    As a previous backer who was silenced via a refund, I'd like to suggest any who are interested in these guys to do your research on this company and what it sells.
    In my educated and researched opinion, I do not personally believe that this business sells at cost. My theory is that some items seem to me like they are jacked up to cover the cost of others. I also asked them how much they pay themselves with no response (since that is considered a cost of doing business).
    I have found similar items at similar or lower prices from companies who do not claim to sell at cost.

  • @EdilbertoLlanes
    @EdilbertoLlanes 8 лет назад +3

    Published on Jun 26, 2015
    Description: What do we mean by “nonexcludable” and “nonrival” when talking about public goods? Public goods challenge markets because it’s difficult to charge non-payers and it’s inefficient to exclude anyone - so, how do we produce them? Public goods provide an argument for taxation and government ...

  • @Thomas_98
    @Thomas_98 2 года назад

    Very clear explanation, thank you!

  • @venkatachalapathibaskar5927
    @venkatachalapathibaskar5927 6 лет назад

    'Practice Question' section is not working.

  • @jimmyli319
    @jimmyli319 2 года назад

    Inspiring! Thank you!

  • @wieskarimi2999
    @wieskarimi2999 2 года назад

    Wouldn't Wifi be rival due to restraints on Bandwith and how one person could suck up all of the bandwidth knowingly or unknowingly?

  • @scientistmurshid
    @scientistmurshid 7 лет назад

    Thanks for your nice classes. I think another good example of excludable goods might be - if you buy a car. It will be excludable to others. As because you the only person who will use it. Am I right Professor Alex?

    • @hosseinfaridnasr2778
      @hosseinfaridnasr2778 4 года назад +1

      Yes because we can say a group of people can't use said car, but it is non rival as you and someone else can use it simultaneously without reducing either of your enjoyments(utilities)

  • @feigao5839
    @feigao5839 7 лет назад +1

    does health food is public goods? or just goods with positive externalities?

    • @IonSterpan
      @IonSterpan 7 лет назад +2

      If I consume healthy food that has mostly private benefits, but there are some external benefits as well. Of those external benefits, the largest spillover is on the people around me, for example my kids who benefit from having a healthy father who earns income and spends it on them. But in general I can exclude others from most of the external benefits coming from my healthy food. Those external benefits are also rivalrous. When I am successful at work due to my healthy food, and I spend my income for my kids's benefit, that spending is rivalrous: it my kids who benefit, not other people's kids. Sure, there are some nonexcludable and nonrivalrous elements but they are too small to call healthy food a public good.

    • @scientistmurshid
      @scientistmurshid 7 лет назад

      nice explanation

  • @user-uk7sg6of4h
    @user-uk7sg6of4h 5 лет назад +1

    that's helpful, thanks

  • @jebediahkermin1767
    @jebediahkermin1767 3 года назад +2

    Love how the "free riders" pictured were a bunch of working class people on a train. Great, healthy imagery about what kind of person has value.

    • @skaz1504
      @skaz1504 3 года назад

      And people of color, no less. Also couldn't help but notice that the "forced riders" were illustrated by IRS agents - let's villainize those who try to make our political, social, and economic system work.

  • @avestaabdulrahman6549
    @avestaabdulrahman6549 5 лет назад

    proper job!

  • @den4199
    @den4199 Год назад

    why can't public goods be produced by the government?

  • @rigorous-course
    @rigorous-course 2 года назад

    Good 👍

  • @aykirithoughts5265
    @aykirithoughts5265 3 года назад

    Wifi is actually a private good because wifi has limited bandwidth. If I use more bandwidth, there is less for others.

  • @nacoran
    @nacoran 9 лет назад

    The problems with things like asteroid defense and national defense is that they are paid for with a finite resource, (money/man hours/resources) so while they seem like a pure public benefit the resources used to make them are private resources.
    On the other hand, I think all data- from songs to video games to movies, should be considered public goods for consumption, but there should be a public tax that compensates the creators of the data based on how much it is consumed. Basically, it's the library concept on steroids.

  • @shubhammaheshwari1191
    @shubhammaheshwari1191 3 года назад

    1:30 The person who is wearing underwear is trying to cover himself while people who aren't wearing anything dgaf! XD

  • @JamesDStarr
    @JamesDStarr 3 года назад

    Asteroid prevention? Snicker...not happening at the moment.

  • @Boristien405
    @Boristien405 6 лет назад

    If asteroid protection was truly necessary, people would voluntarily fund it. If they don’t think it’s necessary that the people that really care will have to fork up a higher cost. But also, the umbrella idea isn’t a realistic example. It’d be more accurate if it was insurance.

    • @voluntarism335
      @voluntarism335 4 года назад

      exactly, cannot believe this SHIT! is taught in schools, fuck me this video is DUMB! If there is a demand for something it will be provided no need to force people to pay for it. Everything the government does is socialism and evil

  • @clockfixer5049
    @clockfixer5049 4 года назад

    5:15 regret to say that but there is no invisible hand for providing private goods, either.

  • @brandonwebb764
    @brandonwebb764 8 лет назад +1

    What is this commy libral nonsense? And who said there was no competition in cable tv? wtf

    • @LuckyBuckyNo7
      @LuckyBuckyNo7 8 лет назад +3

      +Brandon Webb Dude, can't you read? Cable TV example was about its properties are nonrival and excludable ( the service is available to payers of the service but I cannot cost effectively block you ( another service buyer) from having the right to the service). The free riders are the folks who come to the service payers' domain and watch the service from your TV connection and do not bring you pizza/food/beer/etc. as compensation for their derived entertainment.
      Trust me, this is not Liberal commy crap. This is where the marketplace should work. Government health care is not a pure public good and should stay out of the market. Tax policy should encourage tax deductions and health savings programs for WORKING taxpayers so they can afford to have some health insurance and budget for medical expenditures. Obamacare forces taxpayers to subsidize the unhealthy, illegal, uninsured, government employed and imprisoned member of our society. The Deadweight society.

    • @brandonwebb764
      @brandonwebb764 8 лет назад +2

      T.V. is just a consumable good. When you watch it you're consuming it. Same with music and movies. If people don't consume it, they'll sell something that will. People love the bullshit they're told about, they're too ignorant to know much. They love Jesus, and the Government, and the Republicrats, and warfare, and welfare. That kind of stupid bullshit.
      Healthcare is a service no different from any other. If you want it, you should pay for it. Period. The sellers should compete for your votes ($) in the market place by tirelessly serving you better and doing MORE with LESS than the competition. That is economics.
      The government is capable of very little and has a severely limited scope where it can serve anyone. No, drug laws, no marriage laws, no education laws, no food laws, no irs, no fda, no FED, no welfare of ANY kind, no big military.....most of the government agencies should go. The Government is good for very little, and it's unpleasant that there's room for it at all. Government is the problem.

    • @sherylhailey3804
      @sherylhailey3804 7 лет назад +1

      LuckyBuckyNo7 hey do u wanna

    • @Andy-em8xt
      @Andy-em8xt 4 года назад

      Ok Comcast PR team

  • @cauemarcelltomaz470
    @cauemarcelltomaz470 4 месяца назад

    Trash