Public goods, mixed goods, and monopolistic competition /

Shmanske (economics, California State, Hayward) argues for the near universality of public goods ("They are all around us"), commodities for which "consumption by one individual does not reduce the possibility for other individuals to consume it," or nonrival consumption, and (perhaps) nonexcludability, e.g., national defense. Public goods thus are often considered as "market failures" free, competitive markets provide the wrong amount (perhaps zero) of the commodity. Shmanske explores private (market) supply of public goods by adding consideration of monopolistic competition, an intermediate position between competition and monoploy. The author generalizes the approach and the results of each position to suggest interpretations of various pricing procedures (discrimination, user fees, two-part pricing, subsidies). This theoretical volume, which contains a few examples, is appropriate for upper-division undergraduate and graduate students in economics and political economy.-R. A. Miller, Wesleyan University