Exclusion and moral hazard: A further analysis

• 成果类型: Article
• 署名作者: Fraser, CD
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/0047-2727(95)01516-7
• 发表日期: 1996
• 页码: 295-301
• 关键词: shared good; exclusion; Second best

摘要

This paper examines the impact of increasing exclusion costs on the price of a shared good and establishes a simple elasticity condition which determines whether or not the price increases with the exclusion costs. We correct an error in the reasoning in Silva and Kahn's (Journal of Public Economics, 1993, 52, 217-235) paper on exclusion and moral hazard, and construct a class of examples to show that, contrary to their claim, costly exclusion of non-subscribers from the consumption of a non-rivalrous good can result in a lower price as compared with the first best with costless exclusion.