Public Goods Problem

A problem in economics where a collective good or service must be sustained by mutualization of funds across different parties with different incentives while maintaining access.

  • National defence is a public good.
  • Open source software is a public good.
  • City parks are a public good.

See also free rider problem.

References

  1. Oakland, William H. "Theory of public goods." In Handbook of public economics, vol. 2, pp. 485-535. Elsevier, 1987.
  2. Stiglitz, Joseph E. "The theory of local public goods." In The economics of public services, pp. 274-333. Palgrave Macmillan, London, 1977.
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