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12 Cards in this Set
- Front
- Back
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Common pool resources |
Elinor Ostrom - Natural resource and due to its nature is costly to exclude others from. Non consumptive ad nbenefit from maintanence. Subtractable able to be over used , it has 'open access'. Even if others are aware of others actions. Non excludable |
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Free Riders |
Apart of collective action problem maximising short term gain over long term Some may not contribute and just thrive off the beneficial actions of others. |
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State Action |
Substitute grant to facilitate cooperation Providing for all goods can create quality and quantity issue, provision of resources Influence or alter choice to correct incorrect social inefficiencies eg free riders Consider costs/benefits of doing an action- Nozicks conditions of aim, communication and consequences make options less desireable- create a reason for not doing something
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Collective action problem |
People may agree something needs to be done, and understand they will gain from it if they look after a good, even if only you then better then nothing yet it is easy for your efforts to be completely depleted by the actions of others, if more worse actions then better Aware of other, donations or contribution only if others are. Calculate individual choice. Hirshleifer- All loose when pursue own interest, no guarantee his/her restraint will be matched by another |
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State solving collective action problems |
Punishment for not paying tax or not sticking to quota Withdrawal of one citizen or non payment from one citizen wont effect system Force to contribute and agree on a joint mechanism to manage resource |
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Tragedy of the commons |
Hardin- individuals act independently and according to own self interest. This is contrary to long term best interests of a collective entity since it depletes a common resource. Market mechanism failure Consume more then their fair share, especially if not contributing enough back to sustain Care and sustainability overlooked, neglect or collectivize the costs |
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Prisoners dilemma |
Hardin- In rational decision making best decision for both parties would be to both decide to cooperate . But one can gain more if one cooperates and one defects. Can show preference ordering for outcomes in decisions. Humans can be compelled to increase wealth even if resource is limited |
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Public good definitons |
Common understanding is being a resource of good for the benefit or well being of the public provided to all members of society by the government. Economic is a product an individual can consume without reducing its availability to another individual and from which no one is excluded Ie excluding non-payers. |
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State types of coercion for public goods |
Government production, control of pricing Taxes, conscription, legislation, compensation, provide, regulate, subsidize, create an incentive, installing civic pride, impose on
Harford- Change price to reflect externalities cost- to solve issue of because they are free, this will bring poeple inside the world of truth- eg road space |
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Question of the market |
Property Rights as a solution Private property allocates responsibility to each individual. Ownership. Create privately determined regulations Leaving it to a common resource means that good can be under produced or not produced at all. Also the common resource has no competition to drive market control. |
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Views on Government intervention of public goods |
Goldin- Government services treated as public goods as permanent and inseparable when there are few that are. Many goods and services are not public goods rather we have to make a choice between whether there is equal access or should it be available selectively
Seldon- There are externalities associated with not charging, having a good seen as free means there is no reason to economise and they will use it as if it was free even if provide from tax etc
Laissez-Faire market where private transactions are free form government interference such as restrictions, tariffs, subsidiaries and regulations.
John Stuart Mill- Govt can be used to promote interests
Ostrom- Public planning can solve, methods of decision making and mechanisms of law in resolution settling. Users have more knowledge on how resource can be used inappropriately and more incentive.Users should themselves monitor. Private profiting makes over using the resource past its equilibrium.Against tragedy of the commons, diversify institutions |
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Justice-Nozick |
Property has constraints and decision modes, which have following consequences and effects. Enforceable claim to some portion whether people take these upon themselves Some types of decisions about X made by me and others y you. Can be also joint decision or passing of a right. Distribute resources in the way justice requires so people control and are morally and legally secure. |
