Keyword: Rivalness
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Term to classify goods
- Rival: If consumed by one not available for a second
- Example: Food
- Rival goods can be limited
- Abundance of a rival good makes rivalness less important
- Non-rival: Each consumption is independent of each other
- Example: Information, sunlight
- Inherently not limited
- Scarcity must be imposed by external means
- Anti-rival: The good is more useful if it is consumed by many
- Happens through network effects
- Example: Telephone
- Markets of material goods are based on rival goods
Free Software is an anti-rival good