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Money & WorkMental model

Why nobody voluntarily pays for the lighthouse.

Public goods have two traits: nobody can be excluded from using them, and one person's use does not diminish another's. Non-payers benefit anyway. So the market supplies too little of them – dikes, defence, clean air.

Useful: The free rider is the reason such goods are financed through taxes rather than prices.

Source: de.wikipedia.org

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