Question

Discuss a time when you experienced congestion on a highway, park or other public good.

Why do we tend to have congestion when using public goods?

What are some possible solutions for alleviating congestion on highways or in public goods like national parks?

Answer 1

Quite often while I travel to school I experience jams. Infact such jams are more common in developing countries like India and Pakistan because public goods are less and users are more.

There us congestion due to public goods being non excludable. We can't exclude others from their uses quite easily. The less no. Vis a vis population also leds to this problem but fundamental problem is non excludable type.

The possible solution is to charge for their use E. G fee should be levied for crossing through a particular bridge.,for entering a park etc. Other thing is to increase supply of public goods. Similarly in case of roads private cars can be taxed so much that they become almost unaffordable as has been done in Singapore.