My new book, How to Regulate: A Guide for Policymakers, will be published in a few weeks. A while back, I promised a series of posts on the book’s key chapters. I posted an overview of the book and a description of the book’s chapter on externalities. I then got busy on another writing project (on horizontal shareholdings—more on that later) and dropped the ball. Today, I resume my book summary with some thoughts from the book’s chapter on public goods.
With most goods, the owner can keep others from enjoying what she owns, and, if one person enjoys the good, no one else can do so. Consider your coat or your morning cup of Starbucks. You can prevent me from wearing your coat or drinking your coffee, and if you choose to let me wear the coat or drink the coffee, it’s not available to anyone else.
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