00:01
So the different types of goods here are distinguished by two characteristics.
00:05
One, are they rival? that is, if someone consumes it, can the other person consume it as well? and two, are they excludable? can someone who owns it stop other people from using it? when it is both rival and excludable, we call it a private good, right? this is like a hamburger.
00:21
I eat it, you can't eat it, and i can also stop you from stealing it.
00:25
I mean, maybe you can break into my house, but there is a lot of testing.
00:28
Right.
00:30
If things are excludable but not rival, this is a club good.
00:35
This is like my netflix.
00:37
Once i make the television program, i can sell it to an infinity number of people.
00:41
And netflix can also put up a paywall, right? things that are neither rival nor excludable, these are my commons goods, right? or sorry, things that are rival but excludable.
00:57
These are my common goods, right? imagine fish in the ocean.
01:01
If i take a fish out of the ocean, not also take that fish out of the ocean, right? the fish can only be caught by one person, so it is rival, but there's no excludability involved, right? there's no way to block someone from accessing the ocean.
01:15
And then the opposite of private is public goods, right, where they are neither excludable non -rival...