What characterizes a Common Good?

A Common Good is characterized as being rivalrous and non-excludable. This means that while one individual's consumption of the good decreases the amount available for others (rivalrous), it is not feasible to prevent individuals from using the good (non-excludable).

For example, consider fisheries or clean water. When one person catches fish or uses water, it reduces the amount available for others, demonstrating rivalry. At the same time, it is challenging to restrict access to these resources unless measures are taken; thus, they are considered non-excludable.

Understanding this classification is important as it highlights the need for effective management and regulation to prevent overuse and ensure sustainability, which is often a challenge for common goods.