Summary
Summary Chapter 11 - Public Goods and Common Resources
- Course
- Institution
- Book
My Chapter 11 notes on 'Public Goods and Common Resources' with tables and explanations
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
Mankiw Principles of Microeconomics Summary
-
Saving, Investment, and the Financial System N.Gregory Mankiw Principles of Economics Eighth Edition
-
GDP-Production and Growth
Seller
Followlucaallaart
Reviews received
Content preview
Chapter 11 - Public Goods and Common ResourcesThe Different Kinds of Goods
In thinking about the various goods in the economy, it is useful to group them according to
two characteristics:
1. Is the good excludable? Can people be prevented from using the good?
2. Is the good rival in consumption? Does one person’s use of the good reduce
another person’s ability to use it?
Using these two characteristics, we can divide goods into four categories
1. Private goods are both excludable and rival and consumption. Consider an ice
cream cone for example. An ice-cream cone is excludable because it is possible to
prevent someone from eating an ice-cream cone - you just don't give it to them. An
ice-cream cone is rival in consumption because if one person eats an ice-cream
cone, another person cannot eat the same cone. Most goods are private goods: you
don't get one unless you pay, and once you get it, you are the only person who
benefits.
2. Public goods are neither excludable nor rival in consumption. That is people cannot
be prevented from using a public good, and one person’s use of a public good does
not reduce another person’s ability to use it.
3. Common Resources are rival in consumption but not excludable. When a person
catches a fish, there are fewer fish for the next person to catch. Yet these fish are not
an excludable good because, given the vast size of the ocean, it is difficult to stop
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller lucaallaart. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.19. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
56326 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now