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[[File:Taipei101fireworks.jpg|thumb|230px|A [[fireworks|fireworks display]] is a public good because it is non-excludable (impossible to prevent people from using it) and non-rivalrous (one individual's use does not reduce availability to others).]] |
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[[File:Taipei101fireworks.jpg|thumb|230px|A [[fireworks|fireworks display]] is a public good because it is non-excludable (impossible to prevent people from using it) and non-rivalrous (one individual's use does not reduce availability to others).]] |
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In [[economics]], a '''public good''' is a [[Good (economics)|good]] that is both [[excludable|non-excludable]] and [[rivalry (economics)|non-rivalrous]] in that individuals cannot be effectively excluded from use and where use by one individual does not reduce availability to others.<ref>For current definitions of public goods see any mainstream microeconomics textbook, e.g.: Hal R. Varian, ''Microeconomic Analysis'' ISBN 0-393-95735-7; [[Andreu Mas-Colell|Mas-Colell]], Whinston & Green, ''Microeconomic Theory'' ISBN 0-19-507340-1; or Gravelle & Rees, ''Microeconomics'' ISBN 0-582-40487-8.</ref> Examples of public goods include [[Atmosphere of Earth|fresh air]], [[knowledge]], [[lighthouse]]s, national defense, flood control systems and [[street lights|street lighting]]. Public goods that are available everywhere are sometimes referred to as [[global public good]]s. |
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In [[economics]], a '''public good''' is a [[Good (economics)|good]] that is both [[excludable|non-excludable]] and [[rivalry (economics)|non-rivalrous]] in that individuals cannot be effectively excluded from motikas terrible class use and where use by one individual does not reduce availability to others.<ref>For current definitions of public goods see any mainstream microeconomics textbook, e.g.: Hal R. Varian, ''Microeconomic Analysis'' ISBN 0-393-95735-7; [[Andreu Mas-Colell|Mas-Colell]], Whinston & Green, ''Microeconomic Theory'' ISBN 0-19-507340-1; or Gravelle & Rees, ''Microeconomics'' ISBN 0-582-40487-8.</ref> Examples of public goods include [[Atmosphere of Earth|fresh air]], [[knowledge]], [[lighthouse]]s, national defense, flood control systems and [[street lights|street lighting]]. Public goods that are available everywhere are sometimes referred to as [[global public good]]s. |
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Many public goods may at times be subject to excessive use resulting in [[externalities|negative externalities]] affecting all users; for example [[air pollution]] and [[traffic congestion]]. Public goods problems are often closely related to the [[Free rider problem|"free-rider"]] problem, in which people not paying for the good may continue to access it, or the [[tragedy of the commons]], where consumption of a shared resource by individuals acting in their individual and immediate self-interest diminishes or even destroys the original resource. Thus, the good may be under-produced, overused or degraded.<ref>Rittenberg and Tregarthen. Principles of Microeconomics: Chapter 6, Section 4. pp. 2 [http://www.saylor.org/site/wp-content/uploads/2012/06/ECON101-3.2.pdf] Accessed June 20, 2012</ref> Public goods may also become subject to restrictions on access and may then be considered to be [[club goods]] or [[private good]]s; exclusion mechanisms include [[copyright]], [[patents]], [[congestion pricing]], and [[pay television]]. |
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Many public goods may at times be subject to excessive use resulting in [[externalities|negative externalities]] affecting all users; for example [[air pollution]] and [[traffic congestion]]. Public goods problems are often closely related to the [[Free rider problem|"free-rider"]] problem, in which people not paying for the good may continue to access it, or the [[tragedy of the commons]], where consumption of a shared resource by individuals acting in their individual and immediate self-interest diminishes or even destroys the original resource. Thus, the good may be under-produced, overused or degraded.<ref>Rittenberg and Tregarthen. Principles of Microeconomics: Chapter 6, Section 4. pp. 2 [http://www.saylor.org/site/wp-content/uploads/2012/06/ECON101-3.2.pdf] Accessed June 20, 2012</ref> Public goods may also become subject to restrictions on access and may then be considered to be [[club goods]] or [[private good]]s; exclusion mechanisms include [[copyright]], [[patents]], [[congestion pricing]], and [[pay television]]. |
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