Private Goods are products that can be purchased and consumed by an individual, and it is relatively easy to prevent others from using the same product. This is due to two defining characteristics of these goods: rivalry and excludability.
Private goods, ranging from food to personal items, are common in everyday transactions. Examples include a cup of coffee or a smartphone, where the ownership and use by one person prevents others from enjoying the same product.
Common Resources
In contrast, common resources are goods that are available for everyone to use, but they can become depleted if overused. These are rival goods that are non-excludable, meaning:
A classic example is fish in the ocean. Anyone can go fishing without having to pay for access. However, when too many fish are caught, the fish population could dwindle to unsustainable breeding numbers, reducing the availability of the fish for others. Forests, fresh water, and public grazing lands are other common resources that fall into this category.
From Chapter 14:
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