Rivalry (economics)
From Wikipedia, the free encyclopedia
In economics, a good is considered either rivalrous (rival) or nonrival. Rival goods are goods whose consumption by one consumer prevents simultaneous consumption by other consumers. Most goods, both durable and nondurable, are rival goods. A computer is a durable rival good. One person's use of the computer presents a significant barrier to others who desire to use that computer at the same time. However, the first user does not "use up" the computer, meaning that some rival goods can still be shared through time. An apple is a nondurable rival good, once an apple is eaten, it is "used up" and no longer able to be eaten by others.
In contrast, nonrival goods may be consumed by one consumer without preventing simultaneous consumption by others. Most examples of nonrival goods are intangible goods. Television is a nonrival good; When a consumer turns on a television, this doesn't prevent the TV in another consumer's house from functioning as well. By definition, fame is a rival, intangible good, since not everyone can be famous at the same time. Nonrival, tangible objects include a beautiful scenic view or the common cold.
Goods that are non-rival are therefore goods that can be enjoyed simultaneously by an unlimited number of consumers. Goods that are both nonrival and non-excludable are called public goods.
| Types of goods
public good - private good - common good - common-pool resource - club good - anti-rival goods durable good - non-durable good - intermediate good (producer good) - final good - consumer good - capital good.
|
