Non Rivalrous WPS Office

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Non-rivalrous: Accessible to all while one's usage of the product does not affect the availability of other

consumption. This means the same amounts left for the remaining consumers.

Non-excludability: it is difficult and expensive to exclude someone (non-payers) from consuming the
good.

Goods that fulfil both these properties are called “pure public goods”.

Examples Clean air, radio, national defense, fire service and street lights.

This are extreme cases.

At the other extreme, pure private goods which are rivalrous in consumption and excludable.

Ex. Food, clothes, house...

Most of goods are fall in between these two extremes.

A good can satisfy only one part of public good definition is called impure public goods.

good can satisfy partial definition of public good is called impure public goods.

Based on this, public goods are 4 major groups.

Common-pool resource:

A good that is rivalrous but non-excludable.

Eg. Frests, irrigation systems, fishing grounds...

Club goods: are the goods that are excludable but they are non-rivalrous.

Eg. private parks, cable television

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