Again, this is a general point. One can bring in additional details to support the claim that the existing outcome is optimal or to support the claim that it is not optimal. But that was the point of my comment. We cannot just start with market outcome and claim success.
You’ve convinced me that my initial comment was mistaken in another way. Specifically, if I haven’t specified an objective (eg, less than 150 incidents of people shitting in San Francisco streets each year, or, every point in San Francisco is within .25 miles of at least 4 free to use bathrooms), then it is meaningless to suggest that it is currently being satisfied. So, insofar that I suggested that an objective involving bathrooms was likely being satisfied (specifically I suggested that we don’t need more bathrooms, but relative to what objective?) without actually specifying that objective, my comment was meaningless.
(Maybe I made this mistake because in my thinking I failed to distinguish between the market equilibrium and objectives.)
If the lens of public goods is not helpful then perhaps look at positive externalities. The two are fairly closely related with regard to the question you’re asking about. Tyler Cowan’s blurb (scroll down a littel) on Public Goods and Externalities notes how markets will under produce goods with positive external effects.
Thanks for the link. Is it the case that people not shitting in the street is a positive externality?
And when you say “under produce” do you mean relative to the market equilibrium for bathrooms or some objective involving bathrooms?
You’ve convinced me that my initial comment was mistaken in another way. Specifically, if I haven’t specified an objective (eg, less than 150 incidents of people shitting in San Francisco streets each year, or, every point in San Francisco is within .25 miles of at least 4 free to use bathrooms), then it is meaningless to suggest that it is currently being satisfied. So, insofar that I suggested that an objective involving bathrooms was likely being satisfied (specifically I suggested that we don’t need more bathrooms, but relative to what objective?) without actually specifying that objective, my comment was meaningless.
(Maybe I made this mistake because in my thinking I failed to distinguish between the market equilibrium and objectives.)
Thanks for the link. Is it the case that people not shitting in the street is a positive externality?
And when you say “under produce” do you mean relative to the market equilibrium for bathrooms or some objective involving bathrooms?