
Contents
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Pure Public Goods Versus Private Goods Pure Public Goods Versus Private Goods
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Myriad Collective Goods Myriad Collective Goods
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Impurely public goods—some rivalry but no exclusion Impurely public goods—some rivalry but no exclusion
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Impurely public—full exclusion and no rivalry Impurely public—full exclusion and no rivalry
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Club Goods Club Goods
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Joint product collective goods Joint product collective goods
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Open-Access Commons Open-Access Commons
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Summary Summary
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Aggregation Technology and Public Goods Aggregation Technology and Public Goods
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Externalities Externalities
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Asymmetric Information and Market Failures Asymmetric Information and Market Failures
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Concluding Remarks Concluding Remarks
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3 Market Failures and Collective Action
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Published:August 2015
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Abstract
The chapter introduces the reader to various market failures—public goods, commons, and externalities—that give rise to the need for transnational cooperation. The strategic aspects of each of these market failures are related to representative game matrices and their efficiency implications. This chapter is particularly interested in the prognosis for addressing market failures by countries that confront these concerns together. Various cases with myriad examples illustrate this point, including the Panama canal, curbing pests, gaining intelligence, and allocating the electromagnetic spectrum. Clubs are shown to be a particularly effective institutional arrangement for promoting transnational cooperation for excludable public goods that are subject to crowding. The first paired comparison involves private and public goods. A second paired comparison concerns pure public goods and the commons. The aggregation technology, associated with public goods, has a strong influence on the possibility of transnational cooperation.
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