PPT-Public goods externalities

Ing David Slavata PhD Public Finance A The Market Failures Public Goods Externalities Imperfect Competition Asymmetric Information The Classification of goods. Yale Braunstein. March 2011. Quick intro to “Consumers Surplus”. Actually, the sum of CS & PS. Consumers gain from price decreases. PS = Profit. Monopoly works by restricting output & raining price, therefore results in “deadweight welfare loss”. A Conjoint Analysis of Transportation Fuel Preferences. Matthew . Winden. and T.C. . Haab. , Ph.D.. Agricultural, Environmental, and Development Economics. The Ohio State University. Outline. Motivation . Health Economics. A course in applied microeconomics, which uses microeconomics to understand the healthcare system or the market for healthcare services.. Some issues we’ll discuss include:. Production and Cost. Varian, Chapter 33. Types of externalities. Consumption externalities. Consumption of a good by agent . A. has a direct impact on agent . B. ’s utility. E.g., smoking, loud music, tidy garden, etc.. 05. McGraw-Hill/Irwin. Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.. Market Failures. Market fails to produce the right amount of the product. Resources may be:. Over-allocated. Do I Wish I . Didn. ’. t Know Now, What I . Didn. ’. t Know Then?.. Tom Means. Director, Council for Economic Education. San Jose State University. Mayor 2008, City . o. f Mountain View . Some Thoughts:. Externalities. Essential Questions. Why are markets inefficient in the presence of positive and negative externalities?. How do we identify the area of efficiency loss (deadweight loss) when externalities are present?. Because these structures do not allocate goods and services in the most efficient way, economists call them market failures. . market failure - . a situation in which the market fails to allocate resources efficiently. This web quiz may appear as two pages on tablets and laptops.. I recommend that you view it as one page by clicking on the open book icon at the bottom of the page.. 5a. Price Ceilings and Price Floors. What is an externality?. the uncompensated impact of one person's actions on the well-being of a bystander (or 3. rd. party). Two Types of Externalities. Negative Externality. If the impact on the bystander is . The VCR. DVD players. Definition. . A . network externality exists when adoption is characterized by complementarily in consumption or production. . . Tirole. , J. 1988. Theory of Industrial Organization. Cambridge, MA: MIT Press: . PPA . 670. Policy Issue Analysis. Dr. Butz. Economic Freedom. Economic . freedom (from an economic efficiency standpoint) . refers to the degree to which private individuals are able to carry out voluntary exchange without government involvement. s. (. CH. 4007. ). Lectu. r. e. . 6. Market failure: public goods and externalities. Lecturer. :. . Xian. Learning Objectives. Explain why free markets sometimes fail to produce optimal outcomes.. Unit 2: How Markets Work. Market Failures. Sometimes markets are not able to provide the goods and services desired by consumers or which can be efficiently produced by suppliers. This situation is called a .