Private Goods vs. Public Goods

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Tim Randall Public or Private Good Public goods have characteristics of non-rival and non- excludable. The former entails that one person's "consumption does not affect another's consumption of a good; the latter conveys that one individual "cannot prevent another from consuming a good" ( N.D. PP. 1). Conversely, a private good is both rival and excludable. An individual owns their good, not everyone can own the same good (rival), and each individual can exclude others from using that good (excludable). Mixed goods are hybrids of public and private: Common Pool Resource goods display the rival elements but are non-excludable, while Club Goods contain the non-rival element but are excludable ( N.D. PP. 1). Congested toll roads- Private good, because some can be excluded from its use by the fee, and rival, because more vehicles on the road indicates one person's use is impacting other individuals using the same road (i.e. less available space). Knowledge- Broadly defined as a public good, because one person's use of information does not diminish another's use of the same information (non-rival), and one individual cannot prevent another from using the knowledge. Broadly defined because private intellectual property could be considered a private good if others are not allowed to use it. Fish in the ocean- Common pool resource, because no one can be excluded from fishing in the ocean however, there is a limited supply of fish (rival). National
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