Финансиране На Производството На Публичните Блага [Financing the production of public goods]

The report examines the methods of financing of public goods. It proves that, with the presence of a large number of users, the opportunities for the privately negotiated solutions are limited and that in these cases arise prison dilemma. Analyses are focused on the financing of two specific types of public goods – weakest-link public goods and volunteer-type public goods. It discusses the limitations of political decisions and concludes that if the private mechanism is failing because of the problem of free riding, it suffers political because the choice depends on the median voter and his preferences do not provide neither effective nor equitable solution.