Economics and Morality Conflicts in the Public Goods Using

Abstract

Introduction. The country’s economic prosperity depends on economic, political, and social factors. A crucial component of a successful country’s development is its culture, which accumulates moral and value guidelines for the individual’s behaviour. Strict observance of moral rules is considerable for public trust formation, which is the foundation for social development. The relevance of the study is caused by the contradictions between individual and collective interests in using public goods. Individual interest gravitates toward cost reduction and avoiding payment for public goods. Instead, the collective interest consists in the moral obligation of the individual to pay for public goods for the general and individual well-being.

Aim and tasks. The purpose of the article is to interpret the phenomena of the economic, social, and cultural factors of the free-riding problem of public goods.

Results. An attribute of public goods is their nonrivalrous nature (the use of the good does not reduce the amount of the good available to others) and non-excludable (non-payers can use the good on an equal basis with those who honestly paid). The free-ride problem of public goods cannot be reduced to market regulation, whereas all communities benefit from the resources, regardless of whether they have paid for them (taxes, transport fees) or not. Regression analysis shows no relationship between economic and moral factors, in particular, the ability to pay for a good (using public transport) does not reduce the number of people who want to get it free of charge (free ride). The cost of the service (the ticket price) also does not affect the willingness to pay or not to pay for public goods usage. Thus, it can be recognized that the economic factor is not critical in using public goods.

Conclusions. Simultaneously, the social factor of compliance with rules and trust is principal. The awareness that other participants also pay for public goods gives moral satisfaction to the individual and positively reinforces his conscience. Individuals’ consciousness and self-limitation form a cohesive community capable of development. Consequently, the social factor influences the individual's motivation and attitude toward the community's interests. Therefore, it can be assumed that the country’s economic growth depends on cultural and social norms regarding compliance with rules and trust, in addition to other factors.