PSC 207 Lecture Notes - Lecture 3: Natural Monopoly, Common-Pool Resource, Avoidance Speech
2 Oct 2016
School
Department
Course
Professor
Document Summary
The state a(cid:374)d de(cid:373)ocracy: the state: the organization that runs the show, historically. They needed land, military, money, and war was happening. The state did not do much of anything: change. Then, france by early 1800s pushed for a centralized bureaucracy; they were the first to have a bureaucracy! Military at a national level instead of going to aristocrats. French nationalism: identity in french languages, culture, etc. The industrial revolution starts (1800s-1900s) the state has more of a role on this economic change since they needed more change: modern state. We demand this stuff in our economy! Education: mancur olsen- the logic of collective action. Olsen argue that toll goods are natural monopolies. Non-excludable, non-rival: these are public goods; defense, lighthouses. Excludable, non-rival: toll goods such as toll roads, toll bridges; these are sunk costs and natural monopolies. Excludable-rival: private goods; these are anything you own. (electronics, food, clothing, etc. )
