Public Goods

Public goods are goods which anyone can use and benefit from, not just those who contribute to the creation and/or upkeep of the good.

  • Public goods are non-excludable: anyone can use them.
  • Public goods are non-rival: one person's consumption of the good does not diminish another person's consumption of it.
YesPrivate goodsCommon-Pool Resources
NoClub goodsPublic Goods

Examples of public goods:

  • National defence
  • Open source software
  • City parks
  • Lighthouses
  • Street lights

See Public Goods Problem