Private property vs. communal property:
 
 
 
 

    The Theories of Frank Knight:
 

        Saving:

        Betting on one's business judgment:
 
 

    Private property and choices:

        1.  Select occupations based on skills:
 

        2.  Select occupations based on greater foresight:
 

        3.  Select either employee or employer:
 

        4.  Select specializations:
 
 
 
 

    Objections to the private property system:

        1.  Freedoms people "should" not have:
 

        2.  Exposes people to risk:
 

        3.  Natural skills are not even:
 
 

The Public Good Problem:

    Jointness in consumption:
 
 

    Nonexclusion:
 
 

       The Jointness Problem:
 
 
 
 
 
 
 
 

        The Free Rider Problem:
 
 
 
 
 
 

       The Nonexclusion Problem:
 
 
 
 
 
 
 
 
 
 
 
 
 

       Graph:  Demand in the Market for two people
 
 
 
 
 
 
 
 
 
 
 
 
 
 

       Graph:  Provision of Public Good by Govt (Progressive Income Tax)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

       Graph:  Provision of Public Good by Govt. (Lump Sum Tax):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

         Graph:  Worst Case Scenario:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

    Incentives to Discover Public Goods:
 

    Bogus Public Goods:
 
 
 
 
 

Joint Goods that are Excludable
 
 
 
 

        The Contiguous Property Problem:
 
 
 

        Using Agents to Determine Appraised Value:
 
 
 

        The Presence of Contiguous Property Does Not Justify Government
        Supply of the Service:
 
 
 

Other (so-called) Market Failures:
 
 

    The Collusive Monopoly:
 
 
 

    Patents, copyrights, and trademarks:
 
 
 

    More on Luck and Collusion:
 
 
 

    Monopoly and Conservation:
 
 
 

    Natural Monopoly:
 
 
 

Externality:
 
 
 
 

Comparison:  Buying Private Goods and Public Goods
 

    Buying a House:
 
 
 
 

    Buying National Defense:
 
 
 
 
 

The Collective Monitoring Problem: