Characteristics Of A Public And Public Good

Decent Essays
A good can either be a private good or public good. Two factors define the characteristics of a private or public good. The characteristics that define a good are its excludability, the ability the consumption a good has on future consumption for others, and whether or not its rivalrous, the effect consumption of a good has on quantity of future consumption. In broad terms, a private good would be excludable and rivalrous, and a public good would be nonexcludable and nonrivalrous. When we look closer at public goods we see there are several types.
A Pure public good is defined as having several characteristics. Those characteristics include being a nonexcludable good and a nonrival good. A nonexcludable good means person A’s consumption of a good does not harm person B’s consumption of the good. Person B will still be able to consume the good. One person’s use won’t restrict another’s. To be a nonrival good is to be a good that can be consumed by person A without reducing the amount left for person B or others. A nonrival good can be used over and over again with no additional cost. “The defining characteristic of a public good is that consumption of it by one individual does not actually or potentially reduce the amount available to be consumed by another individual.” (Garvelle and Rees). WiFi can fit into the category quite nicely on certain circumstances. It can be classified as a social good. A social good is a public good that could be delivered as a private good. In
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