Public goods require government provision from "summary" of The Economic Naturalist by Robert H. Frank
Public goods are goods that are non-excludable and non-rivalrous. This means that once they are provided, everyone can benefit from them, and one person's consumption of the good does not diminish another person's ability to consume it. Examples of public goods include national defense, clean air, and lighthouses. Because public goods are not excludable, individuals have an incentive to free-ride, or enjoy the benefits of the good without paying for it. This can lead to under-provision of public goods in the free market. For example, if a private firm were to provide national defense, it would not be able to exclude non-payers from ...
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