Economics at your fingertips  

Comparing the first-best and second-best provision of a club good: an example

Clive Fraser () and Ali al-Nowaihi ()

Economics Bulletin, 2006, vol. 8, issue 4, 1-6

Abstract: Excludable and congestible shared goods - club goods (e.g., internet access facilities) - are more prevalent than Samuelsonian public goods. Our example shows that, unlike the usual presumption with pure public goods, the optimal second-best supply of a club good might exceed its first-best level. We argue that this arises because user charges can be levied on club goods the government need not impose distortionary taxes to finance them. Thus, the first and second best in a club economy differ mainly because informational constraints prevent the government achieving the right income distribution in the latter.

JEL-codes: H4 (search for similar items in EconPapers)
Date: 2006-03-26
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
Working Paper: Comparing the First-Best and Second-Best Provision of a Club Good: An Example Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().

Page updated 2022-09-06
Handle: RePEc:ebl:ecbull:eb-06h40001