Romer (2002)

Question 1

economic analysis of property rights proceeds in two steps:

Answer 1

1. distinguish between rival vs. nonrival goods
   
   1. for rival goods, strong property rights lead to efficient outcomes
   2. for nonrival goods, property rights involve the trade-off formalized by William Nordhaus:
      
      • weak property rights lead to under-provision
      • strong property rights create monopoly distortions