Public Goods, Common Resources, and Club Goods

By Jodi Beggs, About.com Guide

When economists describe a market using the supply and demand model, they often assume that the property rights for the good in question are well-defined and the good is not free to produce. It’s quite important, however, to consider what happens when these assumptions are not satisfied. In order to do this, we need to examine two product characteristics- excludability and rivalry in consumption.