The provision of lighthouses services: a political economy perspective
Ronald Coase's 1974 article on lighthouses and the Trinity House case, in particular, has triggered extensive debate on the notion of a public good, but also on the possibility of private production of public goods. The resultant literature has discussed the concept of private property and the...
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| Published in | Public choice Vol. 157; no. 1/2; pp. 51 - 56 |
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| Main Author | |
| Format | Journal Article |
| Language | English |
| Published |
Boston
Springer
01.10.2013
Springer US Springer Nature B.V Springer Verlag |
| Subjects | |
| Online Access | Get full text |
| ISSN | 0048-5829 1573-7101 1573-7101 |
| DOI | 10.1007/s11127-012-9951-y |
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| Abstract | Ronald Coase's 1974 article on lighthouses and the Trinity House case, in particular, has triggered extensive debate on the notion of a public good, but also on the possibility of private production of public goods. The resultant literature has discussed the concept of private property and the characteristics of a public good, and offered an economic analysis of the status of lighthouses. This contribution sets out to situate the debate in the context of an economic policy for which the lighthouse is an asset subject to political rent seeking. Thus, it highlights the fact that the characteristics of rivalry and exclusion, which define the public good, are in fact influenced by governments, which decide the nature of the services produced by lighthouses. The weight of the institutional setting, together with political competition for the control of lighthouses, calls for interpretation relating to rent seeking. In this respect, the lighthouse, prior to being a capital asset, has already emerged as a political object that is a source of revenue for certain individuals. |
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| AbstractList | Ronald Coase's 1974 article on lighthouses and the Trinity House case, in particular, has triggered extensive debate on the notion of a public good, but also on the possibility of private production of public goods. The resultant literature has discussed the concept of private property and the characteristics of a public good, and offered an economic analysis of the status of lighthouses. This contribution sets out to situate the debate in the context of an economic policy for which the lighthouse is an asset subject to political rent seeking. Thus, it highlights the fact that the characteristics of rivalry and exclusion, which define the public good, are in fact influenced by governments, which decide the nature of the services produced by lighthouses. The weight of the institutional setting, together with political competition for the control of lighthouses, calls for interpretation relating to rent seeking. In this respect, the lighthouse, prior to being a capital asset, has already emerged as a political object that is a source of revenue for certain individuals. Reprinted by permission of Springer Lighthouse is seen as the example of public goods and an illustration of market failure. Since the publishing of Coase’s article, ‘Lighhouse in Economics’, a debate about the ability of private agents to provide a public good has been raised. More recent articles debated on the interpretation of Coase’s historical example, Trinity’s House, as a failed private entrepreneurship or public provision. Our contribution provides another interpretation of economics of lighthouse. Theoretically, this debate illustrates the importance of the cost of exclusion and the cost of defining property rights in production, and how to deal with these characteristics. Another dimension concerns the institutional dimension for the provision of lighthouse services. Nor a pure private provision, nor a public production, lighthouse services are provided in particular institutional contexts of mixed economy, which has to be taken into account. This contribution deals also with the issue concerning the political dimension of the lighthouse service provision. Cost and productive dimensions are important, political stakes are not less crucial, suggesting that lighthouse service provision results from particular governance systems and has to be thought in terms of a political economy analysis. Ronald Coase's 1974 article on lighthouses and the Trinity House case, in particular, has triggered extensive debate on the notion of a public good, but also on the possibility of private production of public goods. The resultant literature has discussed the concept of private property and the characteristics of a public good, and offered an economic analysis of the status of lighthouses. This contribution sets out to situate the debate in the context of an economic policy for which the lighthouse is an asset subject to political rent seeking. Thus, it highlights the fact that the characteristics of rivalry and exclusion, which define the public good, are in fact influenced by governments, which decide the nature of the services produced by lighthouses. The weight of the institutional setting, together with political competition for the control of lighthouses, calls for interpretation relating to rent seeking. In this respect, the lighthouse, prior to being a capital asset, has already emerged as a political object that is a source of revenue for certain individuals. Ronald Coase's 1974 article on lighthouses and the Trinity House case, in particular, has triggered extensive debate on the notion of a public good, but also on the possibility of private production of public goods. The resultant literature has discussed the concept of private property and the characteristics of a public good, and offered an economic analysis of the status of lighthouses. This contribution sets out to situate the debate in the context of an economic policy for which the lighthouse is an asset subject to political rent seeking. Thus, it highlights the fact that the characteristics of rivalry and exclusion, which define the public good, are in fact influenced by governments, which decide the nature of the services produced by lighthouses. The weight of the institutional setting, together with political competition for the control of lighthouses, calls for interpretation relating to rent seeking. In this respect, the lighthouse, prior to being a capital asset, has already emerged as a political object that is a source of revenue for certain individuals.[PUBLICATION ABSTRACT] Ronald Coase's 1974 article on lighthouses and the Trinity House case, in particular, has triggered extensive debate on the notion of a public good, but also on the possibility of private production of public goods. The resultant literature has discussed the concept of private property and the characteristics of a public good, and offered an economic analysis of the status of lighthouses. This contribution sets out to situate the debate in the context of an economic policy for which the lighthouse is an asset subject to political rent seeking. Thus, it highlights the fact that the characteristics of rivalry and exclusion, which define the public good, are in fact influenced by governments, which decide the nature of the services produced by lighthouses. The weight of the institutional setting, together with political competition for the control of lighthouses, calls for interpretation relating to rent seeking. In this respect, the lighthouse, prior to being a capital asset, has already emerged as a political object that is a source of revenue for certain individuals. Adapted from the source document. Ronald Coase’s 1974 article on lighthouses and the Trinity House case, in particular, has triggered extensive debate on the notion of a public good, but also on the possibility of private production of public goods. The resultant literature has discussed the concept of private property and the characteristics of a public good, and offered an economic analysis of the status of lighthouses. This contribution sets out to situate the debate in the context of an economic policy for which the lighthouse is an asset subject to political rent seeking. Thus, it highlights the fact that the characteristics of rivalry and exclusion, which define the public good, are in fact influenced by governments, which decide the nature of the services produced by lighthouses. The weight of the institutional setting, together with political competition for the control of lighthouses, calls for interpretation relating to rent seeking. In this respect, the lighthouse, prior to being a capital asset, has already emerged as a political object that is a source of revenue for certain individuals. |
| Author | Carnis, Laurent |
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| Cites_doi | 10.1111/j.1465-7295.1990.tb00832.x 10.1086/468157 10.1177/1091142107302182 10.1007/s11127-008-9375-x 10.1017/S0018246X01001832 10.1007/s11127-009-9437-8 10.2307/2552442 10.4000/sabix.435 10.1086/466796 10.1515/9781503624306 10.1093/cje/bei068 10.2307/2600328 |
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| References_xml | – reference: GuiguenoV.La signalisation maritime en France : un projet poly—technique au début du XIXème siècleBulletin de la SABIX2004352631 – reference: BlockW.Public goods and externalities: the case of roadsThe Journal of Libertarian Studies19831134 – reference: BarnettW.BlockW.Coase and Van Zandt on lighthousesPublic Finance Review200735671073310.1177/1091142107302182 – reference: KleinD. B.The voluntary provision of public goods? The turnpike companies of Early AmericaEconomic Inquiry19902878881210.1111/j.1465-7295.1990.tb00832.x – reference: SnidalD.Public goods, property rights, and political organizationsInternational Studies Quarterly197923453256610.2307/2600328 – reference: OstromE.Governing of the commons, the evolution of institutions for collective action2006New YorkCambridge University Press – reference: OlsonM.Logique de l’action collective1987ParisPresses Universitaire de France – reference: BertrandE.Empirical investigations and their normative interpretations: a reply to Barnett and BlockPublic Choice20091401–2152010.1007/s11127-009-9437-8 – reference: CoaseR. H.The lighthouse in economicsJournal of Law and Economics197417235737610.1086/466796 – reference: BuchananJ. M.An economic theory of clubsEconomica19653212511410.2307/2552442 – reference: LeesonP. T.CoppS. 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| Snippet | Ronald Coase's 1974 article on lighthouses and the Trinity House case, in particular, has triggered extensive debate on the notion of a public good, but also... Ronald Coase’s 1974 article on lighthouses and the Trinity House case, in particular, has triggered extensive debate on the notion of a public good, but also... Lighthouse is seen as the example of public goods and an illustration of market failure. Since the publishing of Coase’s article, ‘Lighhouse in Economics’, a... |
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| SubjectTerms | Capital assets Commercial production Competition Conceptualization Debates Delivery Systems Discourse Economic analysis Economic Policy Economic rent Economic theory Economics Economics and Finance Engineering Sciences Entrepreneurs Lighthouses Monopoly Other Political Economy Political power Political Science Politics Private property Property Public Finance Public good Public Goods Rent-seeking Rents Revenue Satellite communications Services Studies Trinity |
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