EXCLUDABILITY: The ability to keep people who don't pay for a good from consuming the good. For some goods, it's very easy (that is, the cost is low) for owners or producers to keep others from enjoying the benefit of a good. Examples of this abound, like candy bars, shoes, houses, computers, and well a bunch of other stuff. Other goods, however, prove more difficult to keep the nonpayers away. Examples of these include oceans, national defense, and fireworks displays. Excludability is one of the two key characteristics of a good (the other is rival consumption) that distinguishes between common-property goods, near-public goods, private goods, and public goods.
See also | good types | rival consumption | common-property good | near-public good | private good | public good | market failure | externalities |
EXCLUDABILITY, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2020. [Accessed: February 28, 2020].
Back to the GLOSS*arama