Private property regime , Microeconomics

Private Property Regime

The most commonly known property rights regime is that of private property. Under this regime, individuals, households, or even groups (corporate bodies, firms, etc.) can own resources with exclusive rights to use them, rights to exclude others from using them, and right to sell some or all of them. Examples are private land and livestock ownership, privately owned machines, etc. Only the owner can draw benefits or welfare from the use of these resources.

Neo-Classical economic thinking proposes that resources under private property regimes are efficiently manageable under a competitive market condition.  In reality, however, such market situations do not exist for a large number of resources such as land, forests, water or fishing. Further, sometimes private property leads to socially inefficient uses. For example, poor farmers selling fertile agricultural lands for building motels, etc. The social losses may overshadow the private benefits in such cases. Because of individual property rights, it is often extremely difficult for the government or the state to regulate their use or abuse in the best interest of the people at large.

Posted Date: 12/17/2012 11:57:34 PM | Location : United States







Related Discussions:- Private property regime , Assignment Help, Ask Question on Private property regime , Get Answer, Expert's Help, Private property regime Discussions

Write discussion on Private property regime
Your posts are moderated
Related Questions
1. Suppose we observe that the price of soyabeans goes up while the quantity of soyabeans sold goes up as well. Use the supply and demand curves to illustrate two possible explanat

NEED OF REFORMS: Presently Government offices generate  a lot of paper work in the form of reports/returns, extended file movement in many cases for clarification of some mino

oxidation state of f block elements

Give two level of incomes 100$ and 150$ DRAW demand curve for individual a & b and then draw market demand curve for these two different kind of income


what is bains theory ? describe with the diagram

In the case of a tax abolition on food staples, what are the short run and long run effects?