FundingLightHouses

Context : FabulousMonstersOfEconomicDebate

Copied from PublicGoodsProblems

... the perenial light-house example. All ships passing the lighthouse will see the light. So although someone who funds a light-house to protect their ships, gains from it; they don't get a competitive advantage over anyone else. So the incentive is much reduced.

DanielDavies is very good on lighthouses, here (here) (Scroll to the bottom of the page)

See also :

• RonaldCoase
• The DavidLancashire response in TheFreeSoftwarePhenomenon which suggests that FreeSoftware is often most succesful before a market for a commercial version exists, and is therefore a classic PublicGoodProblem