social cost
Includes private cost to producers plus any external costs imposed on
third parties.
rivalrous
A good or service is rivalrous if one person’s consumption of it reduces
the amount available for others.
excludable
A good or service is excludable if its owner can prevent others from
consuming it.
private goods
Goods or services that are both rivalrous and excludable.
common-property resource
A product that is rivalrous but not excludable.
public goods
Goods or services that can simultaneously provide benefits to a large
group of people. Also called collective consumption goods.
asymmetric information
A situation in which one party to a transaction has more or better
information about the transaction than the other party.
moral hazard