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Anthony Fadly 1 year ago
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@@ -6,13 +6,20 @@ Pollution is a market failure

A **public good** is nonrival and nonexcludable

- A good is **nonexcludable** if it is not possible to prevent others from consuming it
- A good is **nonexcludable** if it is not possible to prevent others from
consuming it

- A good is **nonrival** if one person's consumption of the good does not make it impossible for others to consume it.
- A good is **nonrival** if one person's consumption of the good does not make
it impossible for others to consume it.

Problems with public goods

- **The Tragedy of the Commons** is that nonexcludable but rival goods become
overused

- **Little Incentive** to supply the good privately

- The **free-rider problem** is that people take advantage of the public
resource

- The **drop in the bucket problem** is when

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