[extropy-chat] Re: Collateral public good

[Robin Hanson]

On 12/23/2004, Mike Lorrey responded to Hal Finney:
> >> Anyone who can see the market prices gains value from this information
> >> about the future.  In that sense, running a futures market is a public 
> good.
>
>That any market provides positive externalities to all doesn't make it
>a public good. ...
>A public good is something which cannot pay for itself without the
>state using its authority to make everyone 'pay their fair share'.

Economists are not consistent in their use of the phrase "public good".
Hal is correct using a broad definition, and Mike is correct using his
(unusual) narrow definition.


Robin Hanson  rhanson at gmu.edu  http://hanson.gmu.edu
Assistant Professor of Economics, George Mason University
MSN 1D3, Carow Hall, Fairfax VA 22030-4444
703-993-2326  FAX: 703-993-2323