Chap 1+2 Definitions Flashcards
Club good
A good used by some people to the exclusion of others
Commons
Rival, or contestable, goods that are not excludable and can be exhausted
Externality
Effect of some people’s action on other people’s utility, whether positive or negative
Network good
A good that gives higher benefits to each user the higher the number of users
Private or individual good
A divisible good that can be used individually
Public or collective good
An indivisible good that is supplied jointly to all potential users
Pure public good
A good that can be used by one person without reducing anyone else’s utility
Rival, or contestable, good
A good whose use by one person can diminish the utility for other people using the good
Collective action
Participation or contribution by individual members of an interest group to the provision of public goods
Exit
A move to an alternative provider of public goods; a rival action to “voice”
Free rider
User of a public good who does not contribute to its provision
Latent group
A group in which there is a general abstention by individuals sharing a common interest
Privileged group
A group in which one or a few members pay the whole cost of a public good
Selective incentives
Private goods provided conditionally to the participants in collective action
Voice
An action usually identified with protest or demand for public goods
