Not all costs and benefits are obvious:
o
n
e
x
c
l
u
d
a
b
l
e
Temple University
Economics 1102
|
Not all costs and benefits are obvious: |
|||||
| Externalities |
|
Production - consumption; negative - positive | |||
| Public goods |
|
Non-rival | |||
| Low | High | ||||
| N o n e x c l u d a b l e |
High | Commons Good (Fish in the Ocean) | Public Good (Defense) | ||
| Low | Private Good (Wheat) | Collective Good: (Pay-per-view TV) | |||
| Information asymmetries |
|
Moral hazard, adverse selection | |||
| Positive | Negative | |
| Production |
The beekeeper and the orchard
|
 The coal fired power plant and you
|
| Consumption |
 Your neighbor's beautiful garden
|
 Your neighbor's loud music
|
