Chapter 11 Public Goods and Common Resources

Chapter 11 Public Goods and Common Resources - Chapter 11:...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 11: Public Goods & Common Resources I. Characteristics of Goods 1. Rival vs. Non-Rival A. Rival : One person’s use of the good reduces another person’s ability to use it. B. Non-Rival : One person’s use of the good Does Not reduce another person’s ability to use it. 2. Excludable vs. Non-Excludable A. Excludable : People Can be prevented from using the good B. Non-Excludable : People Cannot be prevented from using the good 1. Private Goods : Excludable & Rival 2. Public Goods : Non-Excludable & Non-Rival 3. Common Resources : Non-Excludable & Rival 4. Club Goods or Artificially Scarce Goods : Excludable & Non-Rival
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Page 2 of 9 Non- Excludable Excludable Rival in consumption Non-Rival in consumption Private goods Club goods Public goods • National Defense Common resources • Ice cream
Background image of page 2
Page 3 of 9 II. Public goods Free Rider : Person who receives the benefit of a good but avoids paying for it. Street lamps: Advantages: increase safety, decrease accidents (“Street lighting
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/05/2011 for the course ECON 101 taught by Professor Dezhbakhsh during the Fall '07 term at Emory.

Page1 / 9

Chapter 11 Public Goods and Common Resources - Chapter 11:...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online