A public good is a widely available manufactured good or service that is non-rival and non-excludable. Examples include public services like police and firefighters, while professional services and drugs are not public goods. Advances in technology have created new types of public goods like software packages.
In economic terms, a public good is a manufactured good or service that is widely available to consumers. In defining a public good, the item will generally be defined as non-rival, non-excludable, or both. The identification of an item as a public good is normally for analysis purposes, as it is very difficult to find goods created for sale to consumers that do not meet these criteria.
When a public good is said to be non-rival, this simply means that the item remains widely available for consumption by all consumers, even when one consumer had engaged in consuming the good. Non-rival goods can be thought of as easily renewable or so abundant that consumption by one consumer in no way inhibits consumption by others. An example would be an ear of corn harvested from a cornfield. While one ear has been consumed, there are still many more ears of corn that are available for consumption.
A public good is often classified as non-excludable. This means that virtually anyone can make use of the good in some way, essentially making that public good universal. Public services are a good example of non-excludable goods, since anyone can benefit from the presence of police forces or firefighters, regardless of their condition or economic status.
There are some 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 that of a doctor or a lawyer. When an individual makes an appointment with one of these professionals, he is effectively buying that professional’s time. The same time cannot be consumed by any other individual, thus making the duration of the appointment excludable and unmatchable. Similarly, many drugs are limited when it comes to consumer access, with some requiring a prescription from a qualified physician. The fact that some are excluded from access to such drugs means that drugs of this type are considered excludable and rival, and therefore not a public good.
Over time, advances in technology have created new types of public goods. Electric street lighting is an example of a public good that became common in the early twentieth century. Since its light was available to everyone as they walked down a street, the device met the non-excludability and rivalry criteria. Today, products such as software packages are often classified as public goods. This is especially true with products such as free software which is widely available to anyone who wishes to use it, with no barriers of cost or economy to inhibit consumption.
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