The Research On The Policy Of Public Goods

The public goods are uncompetitive and nonexclusive. "Free Picker" problemwill come up because of their nonexclusiveness. Government should supply the publicgoods that private sectors are not willing to provide.Technological advance makes nonexclusiveness of lots of public good possible.Therefore, the pure public goods are not seen in reality. Because of governmentadministrative monopoly and bureaucracy cause low efficiency of governmentalsupply, provide sectors join government supplies the quasi-public goods is a goodway.Quasi-public goods have positive external character and their cost is hardlymeasured. If government considers the need of the public excessively, the profit mustbe reduced. For this reason, the private sectors do not want to supply. Therefore, thegovernment should loosen control. The target of the private sectors is profit. Monopoly and low efficiency willemerge if government do not control the private sectors produce public goods. Toensure the fairness of supply, the government should control the price and quality ofsupply of public goods.