JOINT SUPPLY, THE TAUSSIG-PIGOU CONTROVERSY, AND THE COMPETITIVE PROVISION OF PUBLIC GOODS.

It is the purpose of this article to explore in detail the assumption made that the Marshallian theory of joint supply is equivalent to the theory of public goods. It was established that certain of the fundamental points which emerged in the railway rate theory debates originating between F.W. Taussig and A.C. Pigoyu are directly applicable to the problem of distinguishing between the theories of joint supply and public goods. The apparent basis for applying the model of Marshallian joint supply to the analysis of public goods can be demonstrated by comparing joint supply equilibrium. It is suggested that the prices established for pure public goods are truly discriminatory and not merely differential as in the joint supply model.