Public Goods, Common Resources, and Club Goods

By Jodi Beggs, About.com Guide

It's worth noting that all of these types of goods except for private goods are associated with some sort of market failure. (This market failure comes stems from a lack of well-defined property rights.) In other words, economic efficiency is achieved only in markets for private goods, and there is an opportunity for government to improve upon market outcomes where public goods, common resources and club goods are concerned. (Whether the government will do this in an intelligent matter is unfortunately a separate question!)