Chapter 11 Part I -- Rivalness and Excludability

by Elson Blunt on Jul 15, 2014

In order to be marketed successfully, a good must be both rival (using the good reduces others' ability to also use it) and excludable (the owner of the good can prevent others from using it). A good that is nonrival and/or nonexcludable suffers from the free rider problem and will be underprovided in the market.

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