Abstract

Abstract Pure public goods are defined by two characteristics; they are both nonrival and nonexcludable. They are nonrival goods in that their value is not lessened by the use of others. They are nonexcludable goods in that a person cannot be prevented from using it, whether they have paid for it or not. There are also “impure” public goods; they arise due to “congestion costs.” These costs arise when so many people are using the public good that the benefit of it is reduced for additional users. Public roads during rush hour are impure public goods.

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