ECON 200 Lecture Notes - Lecture 24: Overconsumption, Microsoft Word
8 Dec 2015
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Excludable: it"s possible for sellers to prevent the good"s use. Rival: one person"s consumption of a good prevents other"s ability to consume it: they use it up. Private goods: excludable and rival: plane tickets, pizza, minivans, motorcycle. Public goods: nonexcludable and nonrival: open-source software, streetlights, national defense. Common resources: nonexcludable, rival: forests, fisheries, wildlife. Artificially scare goods: excludable, nonrival: mp3s, subscription-only websites, microsoft word. Free-rider: people take advantage of other people"s goods: when people sneak onto public busses without paying the fare. Tragedy of the commons: individual overconsumption that is inefficient: killing rhinos.
