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Research of Quasi-public Goods and Scenic Spot Ticket Pricing

Author: ShiHuiLai
Tutor: ZhaoGaiShu
School: Capital University of Economics
Course: Industrial Economics
Keywords: public goods quasi-public goods scenic spot pricing
CLC: F590
Type: Master's thesis
Year: 2006
Downloads: 750
Quote: 10
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Abstract


Public goods,due to it’s non-rivalness and non-excludability,is one of the main factors causing market failure. However, compared with pure public goods, what exits in the real world is a large number of quasi-public goods, which does not have the characteristics of public goods. Because of it’s characteristics ,the price of quasi-public goods cannot be fixed by thorough competitive market;it is necessary for government to take charge of price-making. The principle of governmental price-making is to hold the production costs or assure a little profit. There are three basic methods of making price. To choose which method is decided by whether this method can guarantee the lowest provision and reproduction. Essentially speaking, scenic spots is a special kind of quasi-public goods ,therefore the price of admission tickets in scenic spots should be decided by government. Many scholars have made researches of admission fees from different angles, all of which form a solid foundation for future research. For the time being, most scenic spots in foreign countries are free to tourists, however, free or low price policy does not meet the conditions of our country .A suitable method should be that, different levels of government are responsible for making different prices, according to different levels of scenic spots. For instance, world natural and historic heritage is a kind of rare common resources ,the property of which must belong to central government, not local government Therefore, the power of ticket-pricing for world heritage sites must obviously lie in the central government.

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