Chapter 13: Problem 20

Why is a football game on ESPN a quasi-public good but a game on the NBC, CBS, or ABC is a public good?

Short Answer

Expert verified

A football game on ESPN is a quasi-public good because it is non-rival (one subscriber's consumption doesn't reduce availability for others) but excludable, as it requires a subscription to access. In contrast, a game on NBC, CBS, or ABC is a public good, as it is non-rival and non-excludable, since it's freely accessible over the air to anyone with a television and an antenna. The main difference between the two scenarios is the excludability of the broadcast.

Step by step solution

Defining Public Good and Quasi-Public Good

A public good is a good that is both non-rival and non-excludable. This means that one person's consumption of the good does not reduce the availability for others, and no one can be excluded from using the good. In contrast, a quasi-public good has characteristics of both public and private goods; it is non-rivalrous but can be excludable.

Understanding football games on ESPN

ESPN is a cable television network that requires a subscription to access its content. This means that it is possible to exclude people from accessing the football games broadcasted on ESPN if they do not have the subscription. However, once someone has a subscription, their consumption of the game does not reduce the availability for other subscribers. Since the football game on ESPN is non-rival, but excludable, it is a quasi-public good.

Understanding football games on NBC, CBS, or ABC

NBC, CBS, and ABC are broadcast television networks that provide content over the air for free. Anyone with a television and an antenna can access these channels and the content they provide, including football games. As a result, the games on these channels are non-excludable. Furthermore, just like with ESPN games, the consumption of these games by one person does not reduce the availability for others, making them non-rival. Since the football game on these networks is non-rival and non-excludable, it is a public good.

Comparing ESPN and NBC, CBS, or ABC football games

The main difference between a football game on ESPN and those on NBC, CBS, or ABC is the excludability of the broadcast. Football games on ESPN are quasi-public goods because they are non-rival but excludable due to the subscription requirement. On the other hand, football games on NBC, CBS, or ABC are public goods due to their non-excludable and non-rival nature, as anyone with a television and an antenna can access the broadcast without reducing availability for others.

Unlock Step-by-Step Solutions & Ace Your Exams!

Full Textbook Solutions
Get detailed explanations and key concepts
Unlimited Al creation
Al flashcards, explanations, exams and more...
Ads-free access
To over 500 millions flashcards
Money-back guarantee
We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!