We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Finance

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

In Economics, what is a Public Good?

Malcolm Tatum
By
Updated: Feb 27, 2024
Views: 9,641
Share

In economic terms, a public good is a produced good or service that is widely available to consumers. In defining a public good, the item will usually be referred to as non-rivalous, non-excludable, or both. The identification of an item as a public good is normally for purposes of analysis, since it is very hard to find goods created for sale to consumers that do not match this criteria.

When a public good is said to be non-rivalous, that simply means that the item remains widely available for consumption by all consumers, even when one consumer had engaged in consumption of the good. Non-rivalous goods can be thought of as easily renewed, or so plentiful that the consumption by one consumer in no way inhibits consumption by others. An example would be an ear of corn picked from a cornfield. While the one ear has been consumed, there are still many other ears of corn that are available for consumption.

A public good is also often classed as being non-excludable. This means that just about anyone can make use of the good in some manner, essentially making that public good universal. Public services are a good example of non-excludable goods, since anyone can receive benefit from the presence of a police force or a fire department, regardless of their condition or economic status.

There are a few basic examples of products that do not meet the basic definition of a public good. One has to do with obtaining professional services, such as those of a doctor or lawyer. When an individual makes an appointment with either of these professionals, he or she is effectively buying the time of that professional. That same time cannot be consumed by any other individual, thus making the duration of the appointment excludable and rivaled. In like manner, many drugs are limited when it comes to consumer access, with some requiring a prescription by a qualified medical professional. The fact that some are excluded from access to those drugs means that medications of this type are considered excludable and rivaled, and thus not a public good.

Over time, advances in technology have created new types of public goods. The electric powered street light is an example of a public good that became common in the early years of the twentieth century. Since its light was available for anyone to enjoy as they walked down a street, the device met the criteria of being non-excludable and non-rivaled. Today, products such as software packages are often classified as public goods. This is particularly true with products such as free software that is widely available to anyone who wishes to use it, with no barriers of cost or economy to inhibit the consumption.

Share
WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Malcolm Tatum
By Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing to become a full-time freelance writer. He has contributed articles to a variety of print and online publications, including WiseGeek, and his work has also been featured in poetry collections, devotional anthologies, and newspapers. When not writing, Malcolm enjoys collecting vinyl records, following minor league baseball, and cycling.

Editors' Picks

Related Articles

Discussion Comments
By fify — On Feb 05, 2015

@serenesurface-- That's an excellent question.

I'm no expert on the topic but I'm also of the view that food is a private good. There might have been a time when food was a public good (when land wasn't privatized), but it's not now. As you said, we have to pay for it and it's not unlimited. So it's a private good. People have access to food only as much as they can afford it. There are government programs like food stamps that try make food available to everyone but I don't consider that all-encompassing.

A better example of a public good is air. We don't pay for it and we won't run out (unless it's so polluted one day that we can't breathe it anymore!)

By serenesurface — On Feb 04, 2015

Is food really a public good considering that there isn't an unlimited supply and it costs money?

There are lots of people with low income that can't afford every type of produce on the market. I don't see how it's a public good when people don't have equal access to it.

By SteamLouis — On Feb 04, 2015

I think that media ought to be a public good. If software can be, then why can't media?

There are many anti-piracy movements for media like music, films and books. I personally don't believe that these goods should be rivalous any longer. We are in a new era now and as much as we try to fight piracy, it still happens. Even the biggest companies have not been able to prevent it despite all their efforts. So why not make these public goods?

I know a filmmaker who feels the same way. He released his film on the internet on the same day that it released in theaters. Now that's forward thinking and I wish other artists and filmmakers followed suit.

Malcolm Tatum
Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing...
Learn more
Share
https://www.wise-geek.com/in-economics-what-is-a-public-good.htm
Copy this link
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.