New model reveals hidden potential for competitive provision of public goods
Public goods and monopolistic competition are actually related in a way. They both focus on different aspects of the same model. Public goods usually ignore one dimension of consumption, while monopolistic competition does the same with another dimension. By combining these two perspectives, we can get a better understanding of how goods are priced and provided in the market. This new approach challenges traditional ideas and shows that public goods can be provided efficiently by private companies in many cases. This has important implications for how we think about public goods and how policies are formed around them.