Non-excludable

(adjective)

Non-paying consumers cannot be prevented from accessing a good

Related Terms

Examples of Non-excludable in the following topics:

  • The Free-Rider Problem

    • Public goods, as you may recall, are both non-rivalrous and non-excludable.
    • It is the second trait- the non-excludability- that leads to what is called the free-rider problem.
    • Since public goods are non-excludable, free-riders not only can't be prevented from using the good, but actually have an incentive to continue to free-ride.
    • National security is a public good: it is both non-rivalrous and non-excludable.
    • Free riders are able to use roads without paying their taxes because roads are a non-excludable public good.

  • Public Goods

    • Individuals cannot be excluded from using a public good, and one individual's use of it does not limit its availability to others.
    • A public good is a good that is both non-excludable and non-rivalrous.
    • This means that individuals cannot be effectively excluded from its use, and use by one individual does not reduce its availability to others.
    • Pure public goods are those that are perfectly non-rivalrous in consumption and non-excludable.
    • It is non-excludable and non-rival in consumption.

  • Defining a Good

    • National defense provides an example of a good that is non-excludable.
    • Common goods: Common goods are non-excludable and rival.
    • Club goods: Club goods are excludable but non-rival.
    • Non-payers can be prevented from access to the goods.
    • Public goods: Public goods are non-excludable and non-rival.

  • Natural Resource Market

    • Public goods, like air and riverways, are non-excludable and non-rivalrous.

  • The Tragedy of the Commons

    • Common goods are goods that are rivalrous and non-excludable.
    • A classic example of a common good are fish stocks in international waters; no one is excluded from fishing, but as people withdraw fish without limits being imposed, the stocks for later fishermen are potentially depleted.

  • Understanding and Finding the Deadweight Loss

    • If they charge $0.60 per nail, every party who has less than $0.60 of marginal benefit will be excluded.
    • When equilibrium is not achieved, parties who would have willingly entered the market are excluded due to the non-market price.

  • Defining Full Employment

    • Ideal unemployment excludes types of unemployment where labor-market inefficiency is reflected.
    • In an effort to avoid this normative connotation, James Tobin introduced the term "Non-Accelerating Inflation Rate of Unemployment" also known as the NAIRU.

  • Personal Income

    • Personal income also includes income received by nonprofit institutions serving households, by private non-insured welfare funds, and by private trust funds.
    • Income that is not earned from production in the current period—such as capital gains, which relate to changes in the price of assets over time—is excluded.

  • Private Goods

    • In economics, a private good is defined as an asset that is both excludable and rivalrous.
    • It is excludable in that it is possible to exercise private property rights over it, preventing those who have not paid from using the good or consuming its benefits.
    • It is both excludable and rivalrous.
    • It is excludable and rival.

  • Private Property Rights

    • These relations specify the norms of behavior with respect to goods that each and every person must observe in his daily interactions with other persons, or bear the cost of non-observance.
    • In some cases it is technically impossible to exclude (prevent an individual) individuals from the consumption and benefits of a produced economic good.
    • In other cases it may be technically possible to exclude individuals from the benefits of a good but the cost of doing so makes it impractical.