ch. 11 terms

excludability

property of a good whereby a person can be prevented from using it

rival in consumption

property of a good whereby one person’s use diminishes other people’s use

private good

excludable, not rival in consumption

public good

not excludable, not rival in consumption

common resource

not excludable, rival in consumption

club good

excludable, not rival in consumption

free rider

a person who receives the benefit of a good but avoids paying for it

the free-rider problem

public goods aren’t excludable, which prevents the private market from supplying the good

cost-benefit analysis

comparing costs and benefits to society

tragedy of the commons

parable that shows why common resources are sued more than desirable from society’s standpoint