Asked by Paolina Gonzalez on May 04, 2024
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Private markets usually provide lighthouses because ship captains have the incentive to navigate using the lighthouse and therefore will pay for the service.
Private Markets
Markets in which transactions are conducted directly between parties, often involving assets not publicly traded, such as private equity and real estate.
Lighthouses
Towers equipped with navigational lights and other signaling equipment designed to guide ships and warn them of hazards at sea or along coastlines.
Ship Captains
Professionals responsible for navigating ships and supervising their crew to ensure the safe transportation of cargo or passengers.
- Gain insight into the purpose of government action in delivering public goods and minimizing the impact of externalities.
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Learning Objectives
- Gain insight into the purpose of government action in delivering public goods and minimizing the impact of externalities.
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