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Market Failure, Government Failure, and the Private Supply of Public Goods: The Case of Climate-Controlled Walkway Networks

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  • Montgomery, Michael R
  • Bean, Richard

Abstract

Two opposing models of public-goods undersupply are those of 'market failure' and 'government failure.' Empirical work on the relative explanatory power of these two frameworks has been limited by the scarcity of acceptable data. The case of climate-controlled walkways in major urban cores is a rare instance where such difficulties can be overcome. The authors investigate the supply of CCWs in fifty-five large city-cores in North America. They find that (1) CCW networks are well-supplied by market forces, when (2) such forces are not frustrated by government policy. The authors also find evidence that (3) rules-based regimes dominate discretion-based regimes. These results are consistent with the position that the 'government-failure' paradigm is a viable alternative to the traditional 'market failure' paradigm. Copyright 1999 by Kluwer Academic Publishers

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  • Montgomery, Michael R & Bean, Richard, 1999. "Market Failure, Government Failure, and the Private Supply of Public Goods: The Case of Climate-Controlled Walkway Networks," Public Choice, Springer, vol. 99(3-4), pages 403-437, June.
    • Handle: RePEc:kap:pubcho:v:99:y:1999:i:3-4:p:403-37
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    Cited by:

    1. Byron B. Carson, 2022. "Individuals and Externalities in Economic Epidemiology: A Tension and Synthesis," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 37(Fall 2022), pages 1-24.
    2. Katinka Pantzy & Anthony Ziegelmeyer, 2006. "Cooperative Networks: Theory and Experimental Evidence," Papers on Strategic Interaction 2005-32, Max Planck Institute of Economics, Strategic Interaction Group.
    3. Quiroz Flores, Alejandro & Pfaff, Katharina, 2021. "Private provision of public goods and political survival: Rail transport in four European democracies in the 20th century," Research in Transportation Economics, Elsevier, vol. 90(C).
    4. Elinor Ostrom, 2000. "Collective Action and the Evolution of Social Norms," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 137-158, Summer.
    5. Michael David Thomas, 2019. "Reapplying behavioral symmetry: public choice and choice architecture," Public Choice, Springer, vol. 180(1), pages 11-25, July.
    6. Bryon Carson, 2021. "Alain Bertaud, Order Without Design: How markets shape cities. Cambridge, MA: MIT press, 2018. Xiv + 419 pages. USD 40.00 (cloth)," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 34(4), pages 517-522, December.

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