17.7.2 Commercial Infrastructure
A wide variety of private goods are produced by commercial infrastructure
resources. The manufacturing, agricultural processes and food-processing techniques shown in Table 17.8 are, in fact, infrastructural ideas that generate substantial
value across a variety of discrete, well functioning markets. These downstream
markets, where producers continuously seek to satisfy consumers who want various
private goods, actually drive the demand for accessing and using these processes. At
times, such processes provide new opportunities (such as cost reduction or a scale
efficiency improvement) to develop the end products, ultimately benefitting the
consumers. To extend this idea, (a) transportation infrastructure is used by suppliers
to deliver manufactured goods, agricultural goods, foodstuffs, and many other
commercial products; (b) similarly, other infrastructure resources, such as the electricity grid, telephone networks, and the internet, are inputs into these commercial
activities mentioned above.
Competitive markets allow assessing and satisfying demand from the public.
Thus, in this output market, when the producers compete to supply private goods,
these producers will obtain their benefits through their sales and, will therefore be
able, to transmit their exact demand for the required inputs from markets upstream.
This will enable commercial infrastructure suppliers to obtain the necessary demand
information so as to satisfy demand efficiently.
17.7.3 Public and Social Infrastructure
A wide variety of public and social goods are produced by public and social
infrastructure resources, respectively. Intellectual infrastructure resources, such as
abstract ideas and scientific principles, are nonrival inputs for a wide variety of
Table 17.8 Typology of
infrastructure resources
Type
Products
Examples
Commercial Wide range of
private goods
Basic manufacturing processes
Basic agricultural processes
and food processing techniques
Road systems
The Internet
Public
Wide range of
public goods
Basic research
Ideas
Language
The Internet
Social
Wide range of
social goods
Lakes
The Internet
Road systems
Law
488
17 Infrastructure as Public or Private Goods
A wide variety of private goods are produced by commercial infrastructure
resources. The manufacturing, agricultural processes and food-processing techniques shown in Table 17.8 are, in fact, infrastructural ideas that generate substantial
value across a variety of discrete, well functioning markets. These downstream
markets, where producers continuously seek to satisfy consumers who want various
private goods, actually drive the demand for accessing and using these processes. At
times, such processes provide new opportunities (such as cost reduction or a scale
efficiency improvement) to develop the end products, ultimately benefitting the
consumers. To extend this idea, (a) transportation infrastructure is used by suppliers
to deliver manufactured goods, agricultural goods, foodstuffs, and many other
commercial products; (b) similarly, other infrastructure resources, such as the electricity grid, telephone networks, and the internet, are inputs into these commercial
activities mentioned above.
Competitive markets allow assessing and satisfying demand from the public.
Thus, in this output market, when the producers compete to supply private goods,
these producers will obtain their benefits through their sales and, will therefore be
able, to transmit their exact demand for the required inputs from markets upstream.
This will enable commercial infrastructure suppliers to obtain the necessary demand
information so as to satisfy demand efficiently.
17.7.3 Public and Social Infrastructure
A wide variety of public and social goods are produced by public and social
infrastructure resources, respectively. Intellectual infrastructure resources, such as
abstract ideas and scientific principles, are nonrival inputs for a wide variety of
Table 17.8 Typology of
infrastructure resources
Type
Products
Examples
Commercial Wide range of
private goods
Basic manufacturing processes
Basic agricultural processes
and food processing techniques
Road systems
The Internet
Public
Wide range of
public goods
Basic research
Ideas
Language
The Internet
Social
Wide range of
social goods
Lakes
The Internet
Road systems
Law
488
17 Infrastructure as Public or Private Goods