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Chapter 4: Problem 11

A columnist for the Wall Street Journal argued that highspeed Internet connections are now a public good: "We're going to have to transition to the building of public infrastructure and away from the revolution being the domain of private enterprise. It's not enough for Google to roll out high- speed fiber to a handful of cities." a. In what ways is the infrastructure for high-speed Internet connections like automobile highways? In what ways is it different from highways? b. As of 2017 , private firms have constructed most of the infrastructure for high-speed Internet connections,while governments have constructed most highways. Is it still possible that the infrastructure for high-speed Internet connections is a public good despite this fact? Briefly explain. c. Do you agree with the columnist that we should think of the infrastructure for high-speed Internet connections as being like a public good? Is there any information you would need to know before deciding?

Short Answer

Expert verified
Infrastructure for high-speed internet and highways are similar as they both facilitate communication and commerce, but differ in aspects like cost and exclusivity. Despite majorly being constructed by private firms, internet infrastructure can still be considered a public good if it is non-excludable and non-rivalrous. Agreeing with the columnist's viewpoint would require deeper analysis of the cost, benefits, and potential for market failure of treating high-speed internet infrastructure as a public good.

Step by step solution

01

Comparing Infrastructure and Highways

First, consider the ways in which the internet's infrastructure and highways are similar and dissimilar. Both infrastructures serve as crucial veins of communication and commerce for society, facilitating trade, education, and a host of other activities. However, they differ in terms of cost and exclusivity. Internet infrastructure, unlike highways, can serve an infinite number of users simultaneously without the occurrence of a traffic jam.
02

Infrastructure as Public Goods

When evaluating whether the infrastructure for high-speed internet connections is a public good, consider the two main characteristics of a public good: non-excludability and non-rivalry. Non-excludability means that once a good is provided, no one can be excluded from using it. Non-rivalry means that when one person uses the good, it does not reduce its availability to others. Based on these definitions, it's not the who constructs the infrastructure but rather the nature of the good itself that qualifies it as public or private. It's possible for it to be a public good constructed by a private firm if it's non-excludable and non-rivalrous.
03

Evaluate the Columnist's Opinion

Finally, assess the columnist's statement. While high-speed internet infrastructure indeed shares many similarities with a public good, one must analyze several factors, such as cost, benefits, and the potential for market failure, before concluding that it should be considered as such. Thus, agreeing with the columnist's perspective would require more extensive information.

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