Quasipublic Goods 2

Here are some examples of quasipublic goods that would probably not be controversial:

Streets and highways.

It is possible to collect tolls from those who use the streets and highways, but this requires the construction of tollbooths and hiring of tolltakers, which makes it at least somewhat costly. I have been told of a toll bridge in the Pacific Northwest, in a relatively unpopulated region, that took in less in tolls than it paid in salaries for toll-takers. It is no longer a toll bridge, of course. Where the marginal cost of use of a highway is concerned, we must recall that congestion is a cost. At low traffic volumes, the marginal cost may be zero, but at high volumes the marginal cost is not zero when we allow for congestion.

Public Health Services

Services such as inoculation for contagious diseases may benefit some people who are not inoculated, because they prevent epidemics. It is costly to inoculate more people, though, so marginal cost is positive. And it is possible to charge at least some of the beneficiaries. Those who are inoculated can be charged for the inoculation. But it isn't possible to charge those who are not inoculated but who benefit from the reduction in epidemics. Thus, governments have sometimes provided inoculation free or below cost, in order to encourage more people to be inoculated, or have required inoculation by regulations, in order to prevent epidemics.

Broadcast Television and Radio With Commercials

We have seen that no-commercial broadcasting is a "pure" public good. With commercials, we have another case in which some beneficiaries can be charged and some cannot. Those who tune in for the broadcasts cannot be charged, and the marginal cost to them is zero, but advertisers can be charged, and those charges can cover the cost. Moreover, an additional advertisement has an additional opportunity cost of leaving less time for entertainment programming -- as anyone who has suffered through twenty minutes of commercials in the middle of a late movie can confirm. So the marginal cost of advertizing is positive, not zero.