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The Gain from International Trade in Pool Goods and Private Goods
Author(s) -
Fishburn Geoffrey,
Kemp Murray C.
Publication year - 2014
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/roie.12103
Subject(s) - excludability , public good , economics , private good , intermediate good , microeconomics , consumption (sociology) , proposition , speciality goods , club , complementary good , production (economics) , product market , incentive , medicine , social science , philosophy , epistemology , anatomy , sociology
It is well known that perfectly competitive free trade is potentially beneficial for all countries if all goods are both rivalrous and excludable in consumption (“private goods”) and recently (2011) the proposition has been modified to accommodate non‐rivalrous and non‐excludable goods (“public goods”), as well as non‐rivalrous and excludable goods (“club goods”). In the present paper the proposition is modified again, to accommodate rivalrous and non‐excludable goods (“pool goods”). The primary focus is on ocean fisheries, access to which is shared (not necessarily equally) by all countries. However the central proposition to be established is valid for all international pool goods.