Public and Private Goods

Tragedy of the Commons

A concept in economics where individuals, acting independently in their self-interest, deplete shared resources, leading to collective ruin.

Overfishing

A real-world example of the tragedy of the commons, where excessive fishing leads to depletion of fish populations.

Non-Excludability

A characteristic of a resource that makes it challenging to prevent individuals from accessing it.

Rivalry in Consumption

When one person's use of a resource diminishes its availability for others.

Regulation as a solution

Implementing rules that limit resource usage to promote sustainable management.

Privatization

Assigning property rights to individuals or groups to manage a resource sustainably.

Community Management

Local communities collaboratively managing resources to ensure sustainable use.

Excludability

A characteristic of goods that allows for preventing people from accessing them without payment.

Rivalry

A characteristic of goods where one person's consumption reduces the availability for others.

Private Goods

Goods that are excludable and rivalrous, e.g., food, clothing, cars.

Public Goods

Goods that are non-excludable and non-rivalrous, e.g., national defense, public parks.

Common Resources

Resources that are non-excludable and rivalrous, e.g., fisheries, public pastures.

Club Goods

Goods that are excludable and non-rivalrous, e.g., subscription-based streaming services, private parks.