EEP 101/Econ 125 Clubs and Congestion: Lecture 10. David Zilberman UC Berkeley. Clubs and congestion. Clubs- organizations that form to provide excludable goods with Non rivalry Congestion- utility declines with number of users
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Marginal benefits of quantity
To N members
N*MB=Benefits of the marginal member=Extra congestion cost it inflicts= -N*MBN-