Individual Choice for a Vibrant Public Goods Sector: A Proposal for Research and Action

Abstract

We face a public goods challenge spanning urgent environmental, economic and social problems on a national and global scale. The question arises, what is the best way to produce public goods in a market economy setting? Their under-provision is due not only to a lack of political will, but to the inherent market failures in the public goods sector. Opportunely, information technologies provide new means for coordinating business, government, and individual preferences to raise public goods demand and therefore also supply and innovation in this sector. Essential ingredients for developing these needed coordination tools with the public good in mind are market design and public goods knowledge in general. An Institute or School of Public Goods can bring together the expertise to: construct the capabilities for prioritizing public goods; design instruments for individual choice; generate theoretical knowledge, best practice guidelines and concrete proposals; train public goods professionals; and evaluate ongoing projects; in order to make public goods a vibrant sector of society.

Keywords: Public goods, market economy, democracy, sustainability, globalization

JEL Classification: H00, H41, F02, F55, P43, P48