Public goods

Definition

Public goods are services or products that are provided by the government or a non-profit organization and are available to all members of a society, regardless of whether they pay for them directly. These goods are characterized by their non-excludability and non-rivalry, meaning no one can be prevented from using them, and one person's use does not reduce their availability to others.

Related terms

Non: excludability - A characteristic of public goods where it is impossible to exclude individuals from using the good.

Non: rivalry - Describes a condition where one person’s consumption of a good does not diminish the ability of others to consume the same good.

Free Rider Problem:

This occurs when individuals consume a good without contributing to its cost, relying on others to bear the costs of public goods provision