Nonrivalry (in Consumption)
Nonrivalry (in consumption) is an economic concept that refers to the ability of one person to consume a good or service without reducing the amount available for others. This concept is important in understanding the economics of public goods, which are goods or services that are non-excludable and non-rivalrous. Examples of public goods include clean air, national defense, and public parks. Nonrivalry in consumption is a key factor in determining whether a good or service is a public good.
History of Nonrivalry (in Consumption)
The concept of nonrivalry (in consumption) has been around since the early days of economics. In 1776, Adam Smith wrote about the concept of nonrivalry in his book The Wealth of Nations. Smith argued that certain goods, such as national defense, could not be consumed by one person without reducing the amount available for others. This concept has been further developed by economists such as Paul Samuelson and Kenneth Arrow, who argued that nonrivalry in consumption is a key factor in determining whether a good or service is a public good.
Comparison Table
| Good/Service | Rivalrous | Nonrivalrous |
|---|---|---|
| Food | Yes | No |
| National Defense | No | Yes |
| Clean Air | No | Yes |
Summary
Nonrivalry (in consumption) is an economic concept that refers to the ability of one person to consume a good or service without reducing the amount available for others. This concept is important in understanding the economics of public goods, which are goods or services that are non-excludable and non-rivalrous. Examples of public goods include clean air, national defense, and public parks. For more information about nonrivalry (in consumption), please visit the websites of the World Bank, the International Monetary Fund, and the United Nations.
See Also
- Public Goods
- Excludability
- Rivalry (in Consumption)
- Free-Rider Problem
- Tragedy of the Commons
- Marginal Cost
- Marginal Benefit
- Externalities
- Public Choice Theory
- Market Failure
