Public Good

Definition

A public good is a type of good that is non-excludable and non-rivalrous, meaning that it is available to everyone and one person's consumption does not diminish its availability for others.

Related terms

Market Failure: Market failure occurs when the allocation of goods and services by a free market is inefficient or fails to maximize societal welfare.

Free-Rider Problem: The free-rider problem refers to the situation where individuals can benefit from a public good without contributing towards its provision or maintenance.

Externality: An externality is an unintended consequence of an economic activity that affects third parties who are not involved in the transaction.