Common goods is a term that indicates the goods at the interface between private goods and public goods. The basic features are:
- Rivalrous consumption - consumption of the good by one consumer reduces the amount available for other consumers
- Non-excludable consumption - in terms of Costs, it is not reasonably possible to exclude any consumer from consumption
Common goods in practice: Club goods are at the interface between public and private goods and in some cases it may be more efficient to entrust their provision to the public sector.
Related terms and methods:
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