mankiw_ch11 - Ch. 11 Pg. 1 Public Goods & Common...

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11 Mankiw - Ch. 11 Last edited July 14, 2011 Different Types of Goods Goods are: 2 EXCLUDABLE OR NON-EXCLUDABLE # If a good is EXCLUDABLE, can prevent people from using them # non-EXCLUDABLE =impossible to exclude anyone from consumption 2 RIVAL OR NON RIVAL n on-rival = my consumption does not reduce your consumption If consumption by one reduces that of others, we call it a rival good. Goods can fall into 4 categories Ch. 11 Pg. 1
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There are 2 pure types 2 2 pure private plus 2 intermediate types 2 2 Rival Good Non-Rival Ch. 11 Pg. 2
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EXCLUDA BLE Pure Private good cars houses congested toll roads Natural Monopolies fire protection cable tv unconfessed toll roads Non- EXCLUDA BLE Common Resources fish in the ocean air contested non- toll roads Pure Public Good national defence knowledge lighthouse Consider the provision of non-EXCLUDABLE goods
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mankiw_ch11 - Ch. 11 Pg. 1 Public Goods & Common...

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