Question
Public goods.Syracuse is considering putting a Disc (Frisbee) golf course in Barry Park. It will cost $1500.00 per hole / basket.There are three people left
Public goods.Syracuse is considering putting a Disc (Frisbee) golf course in Barry Park. It will cost $1500.00 per hole / basket.There are three people left in Syracuse.Paul has a willingness to pay per hole (h) defined by WTPP =$2300-100h. Reese has a willingness to pay per hole defined by WTPR =$750-75h.Nichole has a willingness to pay per hole defined by WTPN =$575-25h. Courses usually are constructed to be either 9 or 18 holes / baskets long.
a. If each hole / basket costs $1500 to install and we make no effort to control for the free rider problem, is any individual willing to privately provide a 9 hole / basket course?Identify who, and why or explain why not?
b. If we can control for the free rider problem, is societal willingness to pay high enough that we could justify installing a 9 hole / basket course? Show your work.
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
