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