Economics Public Goods Questions Medium
The concept of public goods as a local club good refers to a specific type of public good that exhibits characteristics of both public goods and club goods.
Public goods are goods that are non-excludable and non-rivalrous in consumption, meaning that once provided, they are available for everyone to use and their consumption by one individual does not diminish their availability for others. Examples of public goods include national defense, street lighting, and public parks.
On the other hand, club goods are goods that are excludable but non-rivalrous in consumption. This means that access to the good can be restricted to a specific group of individuals, but once provided, it can be consumed by multiple individuals without diminishing its availability. Examples of club goods include cable television, private golf courses, and toll roads.
When public goods are provided at a local level and access is restricted to a specific group of individuals, they can be considered as local club goods. In this case, the good exhibits characteristics of both public goods and club goods. It is excludable as access is limited to a specific group, but it is non-rivalrous in consumption as multiple individuals within the group can benefit from its provision without diminishing its availability.
An example of a public good as a local club good could be a neighborhood swimming pool that is accessible only to residents of a particular housing community. While the pool is excludable as it is restricted to the residents, it is non-rivalrous in consumption as multiple residents can enjoy the pool simultaneously without reducing its availability for others.
Overall, the concept of public goods as a local club good highlights the intersection between public goods and club goods, where a good is provided at a local level with restricted access but still maintains non-rivalrous characteristics.