public goods allocation
Public goods allocation refers to the distribution of resources for goods that are non-excludable and non-rivalrous, meaning that one person's use does not diminish another's ability to use them. Examples of public goods include clean air, national defense, and public parks. Because these goods are available to everyone, they are often funded by the government through taxation.
The challenge in public goods allocation lies in ensuring that these resources are provided efficiently and equitably. Since individuals may not pay for the benefits they receive, this can lead to underfunding or overuse. Policymakers must balance the needs of the community while managing limited resources effectively.