ation ship does not exist, because both payment and consumption is collective and aggregate. While competition generally results in higher efficiency in terms of cost, some disagreement exists as to whether this form of economic organization always pro vides an optimal use of all resources (Georgescu Roegen, 1980). In addition to seeking an optimal use of resources, there are other reasons for the selection of a form of economic organization other than competitive enterprise. Pure public goods, such as national defense, as an example, cannot be effectively provided through competitive enterprise. In other instances, such as the provision of electrical power or the provision of telecommunications services, the provision of an adequate supply at justifiable costs may not be able to be assured through the use of competitive enterprise. In such instances, it is possible for a public, or a quasi public agency, to provide the goods and services, or they may be pro vided through a regulated monopoly. Pure public goods are those which, because their benefits or use may not be withheld from a single person without with holding them from all persons, must be supplied communally. National defense, street lighting, general police protection, and scientific theory are all examples of pure public goods.
The definition of a pure public good does not demand that the actual provision of the good must be performed in the pub lic sector. As an example, street lighting could be provided by a private sector electrical utility on a contract basis with government.
What the definition of a pure public good does demand, however, is that the good must be paid for communally. Thus, in the example of street lighting provided by a private sector electrical utility on a contract basis with government, the cost of providing the service would be supplied by the taxing jurisdiction contracting for the service. There would be no way for the ele...