Earlier quoted context omitted.
The dam building example illustrates exactly why the public good argument makes sense. Let's say a town of 100 farmers need a dam built and there is a net benefit even if only 50 contribute to building the dam. Now there is a huge incentive for the farmers to play chicken with each other to see who will pay up first. The "free riders" that don't pay for the dam will have extra money to buy more land or other resource…
People are not "rational economic actors" and do not make all their life choices by "incentives" of this type. Most people will care a lot more about, for example, how they are perceived in the community. So simply making the payers list public would, in some cases, prevent people from playing chicken. Many other solutions are possible, depending on context and culture. It's the job of the businessman to use creativi…
It's pretty silly to talk about economics if you don't believe in rational economic actors. A public list is a nice theory, but then you would still have people trying to get on the list for the minimum amount possible and hoping that others would donate more to be higher on the list of donors. And what happens when you have 60 local farmers and 40 corporation farms. Most corporations would be pretty hard to shame into paying if they could somehow get others to pay.
Point #2 goes both ways. If the project becomes a net benefit then the dissenters get the benefit and win even though their judgement was incorrect.
Point #1 also goes both ways and points towards the need for public goods. In reality the sick farmer will benefit the most from public services such as dams and health care being shared by all of society. By sharing the cost of the dam and healthcare across all of the farmers they can help prevent one of them going bankrupt due to a bad case of cancer.
It's true that the government isn't better than everyone else at knowing which dams should built, but that doesn't mean that society can't figure out that some projects are best funded by the entire society.
Anyway - interesting perspective on your part. I wish more people could talk about the pros and cons without getting downvoted for disagreeing with the majority.