Public goods, examples of which will be given below, are values consumed collectively by all citizens. Their use does not depend on whether the population pays for them or not. Next, we consider in more detail public goods: the types and characteristics of these values.
General information
Private and public goods have significant differences. As mentioned above, the second is used by all citizens collectively. The former are available for consumption and benefit their direct owner. Private and public goods differ in the issue of transactions with them. The second is almost impossible to sell. Public goods and services are used by citizens with great pleasure. However, many individuals refuse to pay for their benefit.
Pure and mixed public goods
There are certain signs in accordance with which the classification of values. So, there is a division into pure and mixed public goods. The first are those that have signs of non-exclusivity and indiscrimination. Characteristics that are used in the classification may have a different level of manifestation. So, for example, the two benefits may be characterized by signs of indiscrimination and non-exclusion, but at the same time, one of them shows these characteristics to a lesser or greater extent. In addition, there is a combination of properties for a particular value.
Indiscriminate and non-exclusive
The provision of pure public goods to one individual is impossible without the participation of other citizens. As a result, there is collective consumption. Each individual uses the benefits of the good. At the same time, the utility that is extracted from it by other citizens does not decrease. No one can be excluded from the number of people who use these public goods. Examples of this can be cited as follows: each citizen benefits from the weather forecast, while not reducing the utility that is extracted by others. The same applies to visiting libraries, driving along highways.
General categories
The following types of benefits are distinguished:
- Informational. These include “continuous” public goods. Examples: television, radio.
- Limited use. Such benefits are available to a certain number of consumers at one time. These include the automobile bridge during rush hour.
- Local. These are public goods available to representatives of a particular social group or region. Examples: regional libraries, parks, squares.
- Discrete (museum exhibits, paintings in galleries), free (activities of strong points of law enforcement), with a negative (higher education, courses) and positive (public transport) price.
To provide the public with public goods, it is necessary to attract private ones. The volumes of the latter are limited by total state revenues, which are formed, in particular, due to the receipt of various fees and taxes.
Mixed goods
There are a lot of subtypes in this category. As mentioned above, the characteristics inherent in benefits can be represented in one or another combination. So, indiscrimination can be combined with exclusivity and vice versa. In this regard, there are other examples of public goods. There are values that are characterized by a low level of non-exclusivity and high selectivity. They are called common (for sharing) benefits. These include places on the free beach. They are available to all citizens. But at the same time, if one person takes a place on the beach, then another person will not be able to use it. In this regard, it receives signs of selectivity. As a feature of common goods, the fact that restricting their use is fraught with significant costs is advocated. Most often they are provided at the local (regional) level. Examples of public goods fall into this category: common areas, parks, parking lots and others. In this regard, they are also called "communal." Shared consumption in this case determines a high level of competition regarding their use. We are talking about the principle of "who came first, he took advantage."
Collective values
Not everyone clearly understands the existing division. Therefore, many consumers ask more competent citizens in this matter: "Give examples of public goods of collective use." To begin with, it should be said that such values are characterized by a low degree of selectivity and a high level of non-exclusion. As one of the striking examples, you can get information on the Internet. At the same time, many people can use this opportunity. The marginal cost of increasing the number of consumers remains zero. This, in turn, means that competitiveness (selectivity) in the consumption of this good has a low degree. However, giving it a sign of exclusivity of labor is not. This is achieved through the introduction of Internet connection fees. A feature of such benefits is the possibility of restricting access to them with relatively low costs.
State security
The number of public goods is much less than the number of government goods. Many public goods are considered excluded or competitive in use, and in some cases have both of these features. Here we can say about the provision of secondary education. With an increase in the number of students, the costs are positive. This is due to the fact that the rest of the students in this case will receive less attention due to their greater number. Moreover, a sign of exclusivity acquires such a benefit with the introduction of tuition fees. If some of the students are not able to contribute it, they will be excluded from the educational process in this class.
Demand specifics
The need for one or another good is formed on the basis of the principle of declining marginal utility. Due to the fact that this benefit from using an additional unit is decreasing, the line of individual demand is characterized by a downward slope. Similarly, there is a demand curve for private net worth. However, behind this external similarity, big differences are hidden. First of all, this is that the sale of pure public goods "piece by piece" is impossible. This is due to the fact that they are considered inseparable and shared by all people. Their consumption is not the exclusive right of individuals. These benefits can be used even by those who decide not to pay for them. In this case, no unit is assigned per unit, and consumers can use the entire output volume. In other words, in a specific period of time, they consume a single amount of good.
Market mechanism
In some cases, with its use it is possible to exclude compulsory financing of the release of public goods. In such situations, they are supplied by individual farms. Financing is carried out using the market mechanism. It allows you to implement such methods of support as the exclusion of "free riders", as well as interdependent subsidies and financing. In the first case, restrictive measures are used that block access to consumption. At the expense of low costs, in this case, a good that even has selectivity can be sold in the same way as a private one.
