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Posting-Version: version B 2.10.2 9/18/84; site dciem.UUCP
Path: utzoo!dciem!mmt
From: mmt@dciem.UUCP (Martin Taylor)
Newsgroups: net.politics.theory
Subject: Re: Solution to Free Rider problem
Message-ID: <1757@dciem.UUCP>
Date: Tue, 31-Dec-85 14:07:58 EST
Article-I.D.: dciem.1757
Posted: Tue Dec 31 14:07:58 1985
Date-Received: Tue, 31-Dec-85 14:33:17 EST
References: <20@calgary.UUCP>
Reply-To: mmt@dciem.UUCP (PUT YOUR NAME HERE)
Distribution: net
Organization: D.C.I.E.M., Toronto, Canada
Lines: 36
Summary: 


>Frequently one sees postings in this group claiming that so-called
>"Free Rider" problems require government intervention for their solution.
>A typical situation:
>
>     Residents of a river valley would all benefit from a dam upstream
>     for flood control. But without the government taxing them to 
>     pay for it, they will all wait for someone else to pay and hence
>     the dam will never be built, to everyone's disadvantage.
>...
>I propose a solution here which eliminates the first bad result and 
>most of the second.
>
>The dam gets built as follows:
>
>    A promoter for the scheme defines the project and determines how 
>    much it will cost. He establishes a trust fund to be used to
>    fund the scheme. Anyone may donate money to the trust fund. No
>    money is disbursed until the fund contains enough money to 
>    complete the project. If enough money is not collected by some
>    specified time, all money is given back to the contributors.

I suppose, to be fair, that those who don't want the dam built are
allowed to take out of the trust fund an amount corresponding to the
damage they think it will cause them? (Of course, they would have to
give it back if the dam eventually was not built ... but that's something
for the grandchildren to worry about, isn't it?).

Do you really think anyone would contribute to such a crazy scheme?
If so, I think I will set up a "Dams for Saskatchewan" fund.  I could
do with an upgrade or two for my Mac!
-- 

Martin Taylor
{allegra,linus,ihnp4,floyd,ubc-vision}!utzoo!dciem!mmt
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