Commons are goods that are non-excludable and rival, such as international fish stocks, water, and animals for hunting. Public goods are non-excludable and non-rival, while private goods are excludable and rival. Club goods are non-rival and excludable, and can only be accessed by joining a specific club or organization. Governments are responsible for public goods, while businesses and corporations produce private goods.
The commons are those goods that are rival and non-excludable. When consumed by one person, a rival good is one that reduces the quantity available for everyone else to consume. A non-excludable good is one that no one can exclude from consumption. There are three main types of goods other than the commons. These are public goods, private goods and club goods.
The commons can include assets such as international fish stocks. Most international fishing zones impose no limits on the number of fish that can be caught. Therefore, anyone can catch as many fish as he wants, which makes the good non-excludable. If there are no limits, however, fish stocks could potentially be depleted before more fishermen arrive later. This means that fish stocks are rivals.
Other commons include water and animals for hunting. In many cases, renewable resources, such as land, are commons. As for the other types of goods, the best known type are public goods. Public goods are those that are non-excludable and non-rival; this means that anyone can consume as much good as he wants without hindering another person’s ability to consume the good. These assets include air, national defense and national parks.
Similarly, there are private goods. Private goods are goods that are excludable, which prevents some consumers from consuming and rivaling them, meaning that consuming some of the good takes away the ability of another consumer to consume the good. Private goods are the most common types of goods, as they include all items that you need to purchase from a store. Such items include furniture, cars, food, clothing, and more.
Finally, the last major type of commons are club goods or collective goods, which can only be achieved by joining a specific club or organization. Club assets are non-rival and excludable; therefore, some people are barred from consuming the good, but one person’s consumption does not impede another person’s ability to consume the good. Club assets may include cable television, golf courses, movie theaters, and any other assets provided to a member of a club. Economists have developed these categories for these types of goods and the effects these goods have on the consumer. Government is generally responsible for public goods, and businesses and corporations are responsible for producing public goods.
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