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About Public and Merit Goods
This lecture discusses public goods, merit goods, and demerit goods. Public goods are non-rivalrous and non-excludable, meaning one person's consumption does not reduce availability to others and it is not possible to exclude others from benefitting. However, this leads to free-rider problems where people do not pay but still benefit. Merit goods are goods that are considered more beneficial than consumers realize, leading to underprovision in the free market due to imperfect information and time preference issues. Examples are education and healthcare. Merit goods also generate positive externalities where one person's consumption provides benefits to others. This market failure leads to underconsumption compared to socially optimal levels.
Detailed Information
| Author: | ['Richie Chan'] |
|---|---|
| Publication Year: | 2020 |
| Pages: | 56 |
| Language: | English |
| Format: | |
| Price: | FREE |
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