Definition
- Private good
- A private good is a separate and identifiable item that can be bought and sold, like a slice of pizza.
- Not to be confused with: Public good
- A public good is non-excludable and non-rival, so nobody can be kept from using it and one person's use leaves no less for anyone else.
Test yourself
What is the difference between private good and public good?
A public good is non-excludable and non-rival; a private good is excludable and rival.