Chapter #11: Public Goods and Common Resources

Excludable

individuals can be prevented from consuming the good

Non-excludable

individuals cannot deny each other the opportunity to consume the good

Rival In Consumption

one persons’ consumption of a good diminishes another’s opportunity to consume the good

Non-Rival In Consumption

one persons’ consumption does not affect another' s opportunity to consume the good

Private Goods

Rival, Excludable

Club Goods

Non-Rival, Excludable

Public Goods

Non-Rival, Non-Excludable

Common Resources

Rival, Non-Excludable

Free-Rider

person receiving benefit of a good but avoids paying for it

Const-Benefit Analysis

a study comparing the costs and benefits of providing a public good

Tragedy of the Commons

When people use a shared, public resource for personal short-term benefit enough that it destroys or overuses that resources for everyone