Private Good
A private good is a type of commodity or service that is excludable and rivalrous. Excludability means that it is possible to prevent those who have not paid for the good from consuming it. Rivalrousness means that consumption by one individual reduces the amount available for consumption by others. Private goods are typically owned and provided by private companies or individuals, and are not provided by the government. Examples of private goods include cars, houses, and food.
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 and consumed by individuals or small groups. As societies grew and became more complex, private goods became more widely available and were produced and consumed on a larger scale. In the modern era, private goods are produced and consumed by large corporations and individuals, and are often regulated by governments.
Comparison of Private Goods and Public Goods
| Private Goods | Public Goods |
|---|---|
| Excludable | Non-excludable |
| Rivalrous | Non-rivalrous |
| Owned by private companies or individuals | Owned by the government |
| Often regulated by governments | Not regulated by governments |
Summary
Private goods are commodities or services that are excludable and rivalrous. They are typically owned and provided by private companies or individuals, and are often regulated by governments. For more information about private goods, visit websites such as Investopedia, The Balance, and The Economist.
See Also
- Public Good
- Common Good
- Excludability
- Rivalrousness
- Free Good
- Economic Good
- Consumer Good
- Producer Good
- Private Property
- Public Property
