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The Economic Way of Thinking 13th Edition by David Prychitko, Peter Boettke, Paul Heyne
Edition 13ISBN: 9780132992695The Economic Way of Thinking 13th Edition by David Prychitko, Peter Boettke, Paul Heyne
Edition 13ISBN: 9780132992695 Exercise 16
It's difficult for entertainers to supply their services exclusively to those television viewers who are willing to pay for the entertainment.
(a) How do entertainers nonetheless manage to secure payment for providing their services to television viewers? Think through the way in which the free-rider problem is handled in radio and television broadcasting. To whom do entertainers sell their services? Through what sequence of transactions do viewers receive the entertainment? How is the free-rider problem handled at each stage?
(b) Some homeowners today try to get satelite TV programs without subscribing, by picking up the signal from satellites, using their own receiving dishes. How does the use of scramblers and decoders by pay-television companies illustrate the acceptance of transaction costs to eliminate free riders?
(a) How do entertainers nonetheless manage to secure payment for providing their services to television viewers? Think through the way in which the free-rider problem is handled in radio and television broadcasting. To whom do entertainers sell their services? Through what sequence of transactions do viewers receive the entertainment? How is the free-rider problem handled at each stage?
(b) Some homeowners today try to get satelite TV programs without subscribing, by picking up the signal from satellites, using their own receiving dishes. How does the use of scramblers and decoders by pay-television companies illustrate the acceptance of transaction costs to eliminate free riders?
Explanation
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The market of public goods is usually as...
The Economic Way of Thinking 13th Edition by David Prychitko, Peter Boettke, Paul Heyne
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