Governance by markets: Difference between revisions
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= Glossary = | = Glossary = | ||
== Excludability and rivalrousness (Paul) == | == Excludability and rivalrousness (Paul) == | ||
<p>Excludability and Rivalrousness</p> | |||
<br><p>The terms excludability and rivalrousness both refer to consumption characteristics that can be assigned to- or identified in goods. </p> | |||
<br><p>Excludability: Goods to which economic actors can technically or legally restrict access are considered to have ‘high excludability’. Conversely, goods to which access cannot be restricted are of ‘low excludability’, or, in absolute terms, ‘non-excludable’.</p> | |||
<br><p>Rivalrousness: Rivalrousness on the other hand refers to the finitude of the good in question. The greater the depletion of the stock, quantity, or amount is on account of one party’s consumption, the more rivalrous a good is. </p> | |||
<br><p>Tabulating the characteristics against one another allows for inference and definition of the type of good an object, service, or resource may constitute (see fig. 1). Excludability and Rivalrousness of goods can therethrough serve as a predictor for certain types of market failures: Goods which are non-excludable or of low excludability, but nonetheless costly to provide, are vulnerable to so-called free rider problem. Goods which are non-excludable, but highly rivalrous (common goods), may lead to the tragedy of the commons, that is over-exploitation.<br></p> | |||
<p>AI Training and the (non-)excludability of information.</p> | |||
Revision as of 16:15, 23 September 2026
Glossary
Excludability and rivalrousness (Paul)
Excludability and Rivalrousness
The terms excludability and rivalrousness both refer to consumption characteristics that can be assigned to- or identified in goods.
Excludability: Goods to which economic actors can technically or legally restrict access are considered to have ‘high excludability’. Conversely, goods to which access cannot be restricted are of ‘low excludability’, or, in absolute terms, ‘non-excludable’.
Rivalrousness: Rivalrousness on the other hand refers to the finitude of the good in question. The greater the depletion of the stock, quantity, or amount is on account of one party’s consumption, the more rivalrous a good is.
Tabulating the characteristics against one another allows for inference and definition of the type of good an object, service, or resource may constitute (see fig. 1). Excludability and Rivalrousness of goods can therethrough serve as a predictor for certain types of market failures: Goods which are non-excludable or of low excludability, but nonetheless costly to provide, are vulnerable to so-called free rider problem. Goods which are non-excludable, but highly rivalrous (common goods), may lead to the tragedy of the commons, that is over-exploitation.
AI Training and the (non-)excludability of information.