Transcription of Public Goods Examples - University of Arizona
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Public Goods Examples - University of Arizona
Public Goods : Examples The classical definition of a Public good is one that is non excludable and non rivalrous. The classic example of a Public good is a lighthouse. A lighthouse is: Non excludable because it s not possible to exclude some ships from enjoying the benefits of the lighthouse (for example, excluding ships that haven t paid anything toward the cost of the lighthouse) while at the same time providing the benefits to other ships; and Non rivalrous because if the lighthouse s benefits are already being provided to some ships, it costs nothing for additional ships to enjoy the benefits as well. This is not like a rivalrous good, where providing a greater amount of the good to someone requires either that more of the good be produced or else that less of it be provided to others , where there is a very real opportunity cost of providing more of the good to some people.
electronically at essentially zero marginal cost. So today a book is a public good – i.e., like a TV broadcast, a book is technologically a public good, but to the extent that exclusion is possible, in practice the book may or may not be a public good in any particular case.
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