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>> That does fit the definition of a public good? If you're sticking to the Paul Samuelson definition, it does. Its also the main case the author is arguing fo
by dalbasal 5y ago
>> That does fit the definition of a public good?
If you're sticking to the Paul Samuelson definition, it does. Its also the main case the author is arguing for
That said, what's the purpose of sticking to the definition? I mean, the whole concept basically exists to determine a class of things that should be publicly funded. Since then, many of the goods that were public goods were changed by technology into something else.
A classic example was free-to-air radio and TV. Public good theories were used to justify TV licences. Since then, we found both ways of excluding (cable) and ways of making money that aren't related to exclusion (advertising). Did free-to-air TV stop being a public good once the ad business got lucrative enough. Maybe it stopped being a good altogether.
The definition of a public good was never precise, but it's downright squishy these days. Quite a lot of goods these days, both capital and consumer are nonrivalrous (could also be described as non subtractable, abundant..).
Anyway, the author's usage is pretty clear. FOSS like the worldwideweb is a public good for the purposes that he's using the term.
- nanis 5y ago> determine a class of things that should be publicly funded. No. That is a misunderstanding. The concept allows the possibility that the standard competitive market price discovery mechanism is not going to lead to the optimal level of production of some goods and services. The word "optimal" here is in the usual sense of maximization _subject to constraints_. Even if we all agree that something is a "public good" in the economics sense (therefore, the market mechanism will not be able to provide the optimal level), it is not a foregone conclusion that a government bureaucracy will be able to provide anywhere close to the optimum. For that, they would have to discover the "true social benefits" and "true social costs" created by each additional unit produced. That process is subject to usual political processes and the outcome is determined by who owns the politicians.