Congestible Public Good

Definition

A congestible public good is a type of public good in which the consumption by one individual reduces the benefit or utility that other individuals can derive from it. Essentially, when too many people use or consume this type of public good, it becomes less valuable or effective for everyone.

Analogy

Imagine you and your friends are sharing a pizza. At first, everyone gets a fair share and enjoys it. However, as more people join in and take slices, there's less pizza left for each person, reducing the overall satisfaction and enjoyment.

Related terms

Excludable Public Good: A public good that can be restricted or limited to certain individuals who have paid for access. (Example: Cable TV subscription)

Non-excludable Public Good: A public good that cannot be restricted or limited to certain individuals; available to all regardless of payment. (Example: Street lights)

Rivalrous Good: A good in which consumption by one person reduces its availability for others. (Example: Ice cream cone)