Public Goods and Common Resources Ch 11

Excludability

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

Private goods

Goods that are both excludable and rival in consumption

Public Goods

Goods that are neither excludable nor rival in consumption

Rivalry in consumption

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

Common resources

Goods that are rival in consumption but not excludable

Club goods

Goods that are excludable but not rival in consumption

Free rider

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

Cost benefit analysis

A study that compares the costs and benefits to society of providing a public good

Tragedy of the commons

A parable that illustrates why common resources are used more than is desirable from the standpoint of society as a whole