Concepts of "Public goods" & "Private goods" as inspired by the "Bun Festival" held in Cheung Chau
People flocked to the Cheung Chau Island for the Bun Festival, which is held to commemorate those who died in a plague in the 19th century. The festival is dedicated to driving away evil spirits. A street parade was also held on Sunday, 15 May .
This year, the annual Bun Festival organizers in Cheung Chau have decided to revive the tradition of racing up giant bun tower ---- holding the Bun Scrambling Competition. The competition was once banned after the collapse of a bun tower in 1978.
(a) The ritual and the activities thus organized are referred to "public goods" in economics. Why?
(b) The sweet lucky buns were supposed to cure all illnesses. These buns are referred to "private goods" in economics. Why?
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posted by William, Wong Tak Choi at 4:18 下午
3 Comments:
a)Public good is a good of which its consumption by any individual does not reduce the amount available for others and public good is non-exclusive in comsumption.When you join the ritual,you won't reduce the available for others.Thus, it refers to public good.
b)Private good is a good of which its consumption by any individual reduces the amount available for others and it is exclusive in comsumption.When you get one of the
sweet lucky buns, you will reduce the amount available for others .Thus, it refers to private good.
Private good is a good of which its cousumption by any individual reduses the amount available for others . So in Cheung Chau, the bun that give to you , then other people cannot get the bun whaich giving by you . Thne, it is Private good.
However, the bun festival can be public good. Public good is a good comsumption for all individal.IT does not reduce the amount for the other. FOr the BUn, when you watch it . OTher people can watch it too.
a)Public good is a good of which its comsumption by any individual does not reduce the amount available for others, i.e.,public good is non-exclusive in comsumption. When one joins the ritual and the organised activity there, it doesn't reduce the chances for other to join or participate in them. Thus, it refers to public good.
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