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    A competitor who undercuts prices can drive the original ... — Carmelics
    Home/Consequentialism
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    Challenges→Private provision of public goods can be undermined by competitors who free-ride on those goods.

    A competitor who undercuts prices can drive the original provider out of the market.

    ConsequentialismDemocracy & Governance
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    ConsequentialismDemocracy & Governance

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    Related propositions within the same area of thought.
    A competitor who does not provide the public good avoids the associated costs.A competitor with lower costs can undercut the original provider's prices.Private provision of public goods can be undermined by competitors who free-ride...When it is prohibitively expensive to charge individuals for a good, that good b...

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    A competitor with lower costs can undercut the original provider's pri...92%A competitor who does not provide the public good avoids the associate...76%Private provision of public goods can be undermined by competitors who...69%A defecting firm can be punished by rivals underpricing it for a perio...66%

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    SEP: public-goods
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    The shopping centre example illustrates a potential problem for the private provision of a public good. Suppose that it is prohibitively expensive to charge individuals for the use of parking spaces provided. Parking space is then a public good because non-shoppers can use it free of charge. Suppose further that the owner of land nearby exploits the situation by building a competing shopping centre that does not offer parking space. The new shopping centre can price its competitor out of the mar

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