Economics explained
Category:
Market failure
Public goods
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Another collection of market failures go by the name 'externalities and public goods'.
Non-excludability
Public goods are non-excludable. This implies that once one consumer has purchased the product, all other consumers cannot be prevented from benefiting from that product
Non-diminishability
That one person's consumption does not diminish the availability of the good for other consumers, and that it is impossible to prevent the consumption of it. Example: lighting and broadcast TV
The free-rider problem
The free market may also not be able to produce public goods because of the free-rider problem.
Public goods are impossible to provide to just one person; if you provide them to one person, you have to provide them to everybody. (Think of a fireworks display, for example.) The problem is that most people try to get the benefit without paying for it.