Efficient provision of public goods Consider a fireworks display as a public good it is nonrival and nonexcludable Bigger displays give higher benefit Public good: holding Q constant, add together individual willingness-to-pay to get P · Vertical summation 1010 Efficient provision of public goods • Consider a fireworks display as a public good – it is nonrival and nonexcludable. • Bigger displays give higher benefit. • Public good: holding Q constant, add together individual willingness-to-pay to get P. • Vertical summation