Private goods is an economic term that refers to a specific type of goods, their key characteristics in contrast to public goods, are:
- Rivalrous consumption - consumption of the good by one consumer reduces the amount available to other consumers
- Excludable consumption - in terms of costs, it is reasonably possible to exclude any consumer from consumption
Private goods in practice: Differentiation on public and private goods is used to determine whether the type of goods can be effectively provided by the private sector, or whether public sector is preferable provider.
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