The Lighthouse in Economics

The lighthouse appears in the writings of economists because of the light it is supposed to throw on the question of the economic functions of government. It is often used as an example of something which has to be provided by government rather than by private enterprise. What economists usually seem to have in mind is that the impossibility of securing payment from the owners of the ships that benefit from the existence of the lighthouse makes it unprofitable for any private individual or firm to build and maintain a lighthouse.