Comparing the first best and the second best provision of a club good; an example Clive D. Fraser Ali Al-Nowaihi 2381/2910 https://figshare.le.ac.uk/articles/journal_contribution/Comparing_the_first_best_and_the_second_best_provision_of_a_club_good_an_example/10089995 Excludable and congestible shared goods − club goods (e.g., internet access facilities) − are more prevalent than Samuelsonian public goods. Our example shows that, unlike the usual presumption with pure public goods, the optimal second−best supply of a club good might exceed its first−best level. We argue that this arises because user charges can be levied on club goods; the government need not impose distortionary taxes to finance them. Thus, the first and second best in a club economy differ mainly because informational constraints prevent the government achieving the right income distribution in the latter. 2009-12-08 16:22:05 IR content