Andy goes to the hospital for a broken nose, but it turns into a rant session for Ben. It turns out the roommate situation between Ben, April, and Andy hasn’t been ideal because Andy and April continue to use his things without his permission. Andy and Ben negotiate for ways to remedy the externality on their own. If property rights are well established (Ben does own his stuff!) then two parties can work out externalities without government intervention.
See more: bargaining, Coase Theorem, common resources, externalities, negative externalities, private costs, private goods, public goods, social benefits, social costs, transaction costs, types of goods
Tom recognizes that he can be successful by standing behind successful people and taking partial credit. Free riders often disrupt the efficiency of markets because they receive the benefits without putting in the same level of costs. This rent seeking behavior is apparent in a variety of examples from public service to group projects.
See more: free rider problem, private goods, rent seeking, types of goods
Ron believes that the government should be operated by private enterprise (like Chuck E. Cheese) that uses a token system to participate, like taking a walk, going down a slide, or seeing a duck. This would take a previously nonexclusive good and turn it into one that must be purchased to be consumed.
See more: capitalism, common resources, exclusivity, private goods, profit maximization, public goods, types of goods
Ron believes that governments are a waste of taxpayer money and should be run more like private (for-profit) companies. Later he suggests that parks could operate on a token system so that anyone wanting to use the park would need to pay for their use.
See more: common resources, exclusivity, government, private goods, profit maximization, public goods, rivalry, role of government, types of goods