Private Good, “Me-Only” Good
A private good, also known as a “me-only” good, is a type of good or service that is excludable and rivalrous. Excludable means that it is possible to prevent those who have not paid for the good from consuming it. Rivalrous means that one person’s consumption of the good reduces the amount available for others to consume. Examples of private goods include cars, houses, and food. Private goods are typically provided by the private sector, such as businesses, and are subject to market forces such as supply and demand.
History of Private Goods
The concept of private goods has been around since the dawn of civilization. In ancient times, private goods were typically produced by individuals or small groups of people, and were exchanged through bartering. As societies became more complex, private goods became more widely available and were exchanged through markets. In modern times, private goods are produced by businesses and are exchanged through markets, with prices determined by the forces of supply and demand.
Comparison of Private Goods and Public Goods
| Private Goods | Public Goods |
|---|---|
| Excludable | Non-excludable |
| Rivalrous | Non-rivalrous |
| Produced by private sector | Produced by public sector |
| Subject to market forces | Not subject to market forces |
Summary
A private good, also known as a “me-only” good, is a type of good or service that is excludable and rivalrous. Private goods are typically produced by the private sector, such as businesses, and are subject to market forces such as supply and demand. Private goods differ from public goods in that they are excludable and rivalrous, while public goods are non-excludable and non-rivalrous. For more information on private goods, visit websites such as Investopedia and The Balance.
See Also
- Public Good
- Common Good
- Excludability
- Rivalrousness
- Market Forces
- Supply and Demand
- Price Elasticity
- Marginal Cost
- Marginal Benefit
- Opportunity Cost
