Public Good
About Public Goods with Non-Excludability
In a Free Market, it is not appropriate to provide public goods that are non-excludable and non-rivalrous. Non-excludability refers to a situation where individuals cannot be excluded from using a good or service. When certain individuals can enjoy the benefits of a good without paying for it, others may also use it without paying, leading to a focus on maximizing benefits while avoiding payment. As the number of people who try to benefit without paying increases, the problem of free-riding occurs, resulting in under-provision of the good and making it difficult to create beneficial public goods. Examples of pure public goods include national defense, police services, and dams. However, if left to the mechanisms of a free market, funding for such projects can become difficult. Therefore, the role of the government in funding construction projects allows for the creation of public goods that are beneficial to society and from which the general public can benefit.