C11 Notes Public goods F23

Public Goods & Common Resources CHAPTER11
2 Characteristics of Goods & Services I. Excludability Use or enjoyment of the good or service can be limited to those who pay for it. Excludable goods : Oreos, cars, food, clothes, golf clubs, cellular service, l-p records Non-excludable goods : Sunsets, air, roads (non-toll), national security, fish in international waters, radio signals, knowledge, II. Rivalry in Consumption Consumption or use by one precludes consumption or use by others Rivalrous goods : Oreos, cars, clothes, golf clubs, haircuts, tats Non-rivalrous goods: Cellular services, Sunsets, national security, clean environment, satellite TV
The Four Types of Goods and Services Rival Non-rival Excludable Private Goods Club Goods Non- excludable Common Resources Public Goods Rival Non-rival Excludable Private Goods: Club Goods: Food Fire Protection Clothing Satellite TV Golf Clubs Toll Roads Non- excludable Common Resources: Public Goods: Whales Light House Air Tornado Siren Water National Defense Excludable: can limit benefits to those who pay Rival: Consumption by one reduces availability for others
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