Exclusion and moral hazard: A further analysis
UNSPECIFIED. (1996) Exclusion and moral hazard: A further analysis. JOURNAL OF PUBLIC ECONOMICS, 60 (2). pp. 295-301. ISSN 0047-2727Full text not available from this repository.
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.
|Item Type:||Journal Article|
|Subjects:||H Social Sciences > HC Economic History and Conditions|
|Journal or Publication Title:||JOURNAL OF PUBLIC ECONOMICS|
|Publisher:||ELSEVIER SCIENCE SA LAUSANNE|
|Number of Pages:||7|
|Page Range:||pp. 295-301|
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