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PUBLIC GOOD
they’re non-rivalry and non-excludable
E.G. street lights- cannot prevent someone using the
street light nor does their use prevent someone else seeing the light
NON-RIVALRY
means that one person's use of the good doesn't stop
someone else from using it
NON-EXCLUDABLE
meaning that you cannot stop someone from accessing the good and someone cannot choose not to access the good
QUASI-PUBLIC GOOD
goods which aren't perfectly non-rivalry and non-excludable but aren't perfectly rival or excludable
E.G.- roads, which are semi-excludable, as there could be tolls, and semi-rivalry as people don't 'use up' the roads but congestion causes problems
PRIVATE GOOD
rivalry and excludable
most goods
FREE RIDER PROBLEM
says that you cannot charge an individual a price for the provision of a non-excludable good because someone else will gain the benefit from it without paying anything
free rider is someone who receives the benefits without paying for it
Private sector producers will not provide public goods to people because they cannot be sure of making a profit, due to the non-excludability of public goods
so, if the provision of public goods was left to the market mechanism, the market would fail and so they are provided by the gov and financed through taxation
