Public Goods and
Common Resource
Copyright © 2006 Thomson Learning
11
Figure 1 Four Types of Goods
Rival?
Yes
Yes
No
Private Goods
Natural Monopolies
• Ice-cream cornets
• Clothing
• Congested toll roads
• The fire service
• Cable TV
• Uncongested toll roads
Common Resources
Public Goods
• Fish in the ocean
• The environment
• Congested non-toll roads
• Street lighting
• National defence
• Uncongested non-toll roads
Excludable?
No
Copyright © 2004 South-Western