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 16:
Now Playing
Externalities and Public Goods
28 Views
Externalities and Public Goods
36 Views
Externalities and Public Goods
44 Views
Externalities and Public Goods
38 Views
Externalities and Public Goods
26 Views
Externalities and Public Goods
16 Views
Externalities and Public Goods
65 Views
Externalities and Public Goods
26 Views
Externalities and Public Goods
19 Views
Externalities and Public Goods
12 Views
Externalities and Public Goods
19 Views
Externalities and Public Goods
47 Views
Externalities and Public Goods
75 Views
Externalities and Public Goods
35 Views
Externalities and Public Goods
41 Views
See More
Copyright © 2025 MyJoVE Corporation. All rights reserved