Explain what a rival in consumption and non-rival in consumption mean. Define the term market commonality. Compare and contrast a public good versus a private good. (a) What are the principal characteristics of each? (b) Is there a free rider problem when it comes to public goods? Why?
The opposite of a public good is aprivate good, which is both excludable and rivalrous. Private goods can only be used by one person at a time—a piece of jewelry, for example. In some cases, they are destroyed in the act of using them, such as when a slice of pizza is eaten. P...
All privately owned resources are rivalrous. Only a single user may possess the title and legal claim to the property. Private property owners also have the exclusive right to use and benefit from the services or products. Private property owners may exchange the resource voluntarily, Special Cons...
Non-rival means that the use and consumption (of the resource) by one person does not prevent others from enjoying the same resource or good; and non-excludable indicates that it is difficult or simply impossible to exclude others from consuming the resource in question. Commutative justice is ...
Therefore, human capital sharing is more likely in situations where human capital has complementary value. 4.2.2. Limited Rivalry Value Human capital sharing was effective in NPF and KRS because the value generated by athletes’ human capital was not rivalrous. Rivalry value refers to situations ...
A long tradition in welfare economics argues that social efficiency is the most appropriate normative goal for public sector entities [71–74]. This does not preclude the inclusion of other goals, such as equity, from consideration as discussed below. However, economists have not spelled out what...