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The Role of Membership Fees on Public Goods

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INTRODUCTION:
Public goods are goods that are neither excludable, nor rival in consumption. Excludability means the extent the consumption of a good is limited, while rival refers to the extent the consumption of a particular good limits the consumption of others who wants to consume that particular good. However, some goods do not have both characteristics these goods are called pure public goods, meanwhile others have either of the characteristics, they can be referred to as, club goods, local public goods, common resources. Also, some goods are characterized as rival and excludable in consumption, these goods are called private goods. Also, clubs goods, local public goods are refers to as quasi-public goods, although they may seem as public goods there very nature are not pure public goods. This paper will focus more on public goods, as it will be used to explore the under supply of public goods provision (Mcnutts 1991,930). The prominent characteristics of club goods is its excludability factor, which might signify unequal distribution of the club goods, however, the club goods can be said to be somewhat rivalrous as shown in table 1, this is because club goods can create a sense of rivalry for individuals outside the club. Moreover, for individuals inside the club there might be rivalry in consumption when a point of congestion is reached. The club theory proposes several solutions to enhance the optimal provision of the club good, which includes membership fees (Bchir

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