THE THEORETICAL FRAMEWORK OF CONGESTIBLE PUBLIC GOODS

Abstract

The study has focused on congestible public goods with a certain capacity limit. In this direction, it is aimed to determine what is the congestible public good and its place in the public good. The theoretical framework of congestible public goods has been revealed in the study. A number of problems related to the existence and presentation of congestible public goods are closely related to public property. As a matter of fact, it is known that the private sector can not make production free of charge at the points where the marginal cost of these goods is zero. It has also been seen that semi-public goods and club goods constitute the "congestible public goods" group. The continuity of the demand for goods, both in semi-public properties and in club properties after a certain capacity limit, leads to loss of utility. It has been seen that public pricing and capacity limitations should be expanded in the presentation of these goods, which in itself contain the problem of crowded cost