Public goods are said to have two characteristics. They are:
- Excludable
- Non-rivalrous
What are Excludable Goods?
An excludable good can be limited in terms of who can and access the good. Excludability is generally on a scale. That is, there are varying degrees to which the producer, owner, or governing body of a good may selectively limit access to or consumption of the goods.
What is a Rivalrous Good?
A rivalrous good is a finite good. That is, if one person is accessing, using, or consuming the good, it limits the ability for a second party to access, use or consume that good.
Related Topics
- Market Competition and Innovation
- New Technology and Positive Externalities
- Externality
- Network Externality
- Pigovian Tax
- Coase Theorem
- Agglomeration Diseconomies
- Education – Private and Social Rate of Return
- Government Approaches to Encouraging Innovation
- Public Good
- Public, Private, Club, Common Goods
- Excludable and Rivalrous Goods
- What is the Free Rider Problem for Public Goods?
- Free Rider
- Social Loafing
- Role of Government in Paying for Public Goods
- What is the Tragedy of Commons for Common Resources?
- Income Inequality
- Poverty Line?
- Poverty Trap
- Public Safety Net
- Measuring Income Inequality
- Lorenz Curve
- Ladder of Opportunity
- Tradeoff between Incentives and Income Equality