Michael Reiter, Universitat Pompeu Fabra, Barcelona

Public Goods, Club Goods and the Measurement of Crowding

(with Alfons J. Weichenrieder)

December 1997, revised July 1998

Abstract

The paper shows that some frequently used measures of the degree of publicness of publicly provided goods and club goods are seriously affected by metrization problems. The paper proposes measures that do not depend on arbitrary metrization conventions, and discusses the relationship of these measures to the question of private provision and optimal club size. One finding is that increasing marginal congestion and the existence of a gridlock population are not essential characteristics of a club good. In particular, they are unncecessary for the existence of an optimal club size.