This document defines and provides examples of four types of goods: 1) Rival and exclusive goods like cars and pizza that are used up by individual consumers and others can be excluded. 2) Nonrival and nonexclusive goods like national defense that once provided are available to all and exclusion is difficult. 3) Quasi-public goods that are nonrival but exclusive, like pay TV channels. 4) Open-access goods that are rival but nonexclusive, like fish that anyone can catch but there is a limited supply. It also defines rival, nonrival, exclusive and nonexclusive characteristics of goods.
2. Goods with two features:
1.) The amount consumed by one person is
unavailable to others
2.) Nonplayers can easily be excluded
Rival and exclusive
Examples: car, pizza, TVs
3. Goods that, once produced, are available to all,
but nonplayers are not easily excluded.
1.) Nonrival
2.) Nonexclusive
Examples: national defense, Centers for Disease
Control, police and fire departments.
4. QUASI-PUBLIC GOODS OPEN-ACCESS GOODS
Goods that, once
produced, are available
to all, but nonplayers
are easily excluded.
1.) Nonrival
2.) Exclusive
Examples: TV channel
that is pay per view
Goods that are rival in
consumption but
exclusion is costly
1.) Rival
2.) Nonexclusive
Examples: fish in the
ocean, migratory game
5. RIVAL, NONRIVAL EXCLUSIVE, NONEXCLUSIVE
Rival: Once the good is
consumed, it is
unavailable for others to
consume
Nonrival: Once the
good is consumed, it is
still available for others
to consume
Exclusive: Goods that
only paying costumers
can receive
Nonexclusive: Goods
that anyone can receive.