A public good is a widely available good or service that is non-rival and non-excludable. Examples include public services like police and fire departments, while professional services and limited access medicines are not public goods. Technological advances have created new types of public goods, such as open source software.
In economic terms, a public good is a good or service produced that is widely available to consumers. In defining a public good, the item will usually be referred to 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 this criterion.
When a public good is said to be non-rival, it simply means that the item remains widely available for consumption by all consumers, even when a consumer has engaged in consumption of the good. Non-rival goods can be considered easily renewable, or so abundant that one consumer’s consumption in no way inhibits the consumption of others. An example would be an ear of corn harvested from a cornfield. While the single ear of corn has been consumed, there are still many more ears of corn available for consumption.
A public good is also usually 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-excluded goods, as anyone can benefit from the presence of a police force or fire department, 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 those of a doctor or lawyer. When an individual consults with one of these professionals, he or she is effectively buying that professional’s time. That same time slot cannot be consumed by any other individual, making the duration of the appointment excludable and rival. Likewise, many drugs are limited in terms of consumer access, with some requiring a prescription from a qualified medical professional. The fact that some are excluded from access to these medicines means that medicines of this type are considered excludable and rivaled and therefore not a public good.
Over time, technological advances have created new types of public goods. The electric street light is an example of a public good that became commonplace in the early years of the 20th century. As the light was available for anyone to enjoy as they walked down the street, the device met the criteria of being non-excludable and non-rival. Today, products such as software packages are often classified as public goods. This is particularly true with products such as open source software widely available to anyone who wants to use it, with no barriers of cost or economics to inhibit consumption.
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