Private Goods and Common Resources

Private Goods are products that can be purchased and consumed by an individual, and it is relatively easy to prevent others from using the same product. This is due to two defining characteristics of these goods: rivalry and excludability.

1. R...

Private goods are items that a person can buy and use, which then prevents others from using them.

For example, a slice of pizza. It is a private good because once someone buys it and eats it, no one else can have that slice.

This occurs because of two main characteristics which are rivalry and excludability.

Rivalry means t...