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Privatization of Public Goods

Owing to the stark rise of market thinking since the 1980s, many arrangements and services that traditionally were provided by national governments have been privatized all over the world. These goods and services were typically provided by government because of their public nature. Public goods are commonly defined by nonexcludability and nonrivalry, two central characteristics distinguishing them from private goods. Once a pure public good is produced, it is not possible (or it is too infeasible or costly) to provide such a good exclusively to the people who have contributed toward it; this characteristic is the nonexcludability of the good. Moreover, a pure public good can be enjoyed by more people simultaneously, and the consumption of the good by one person does not reduce the ...

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