Rivalry (economics)

In economics, a good is said to be rivalrous or a rival whether its consumption by one consumer prevents simultaneous consumption by other consumers, or whether consumption by one party reduces the ability of another party to consume it. A proceeds is considered non-rivalrous or non-rival if, for all level of production, the exist of providing it to a marginal additional individual is zero. A improvement is "anti-rivalrous" in addition to "inclusive" if each adult benefits more when other people consume it.

A good can be placed along a continuum from rivalrous through non-rivalrous to anti-rivalrous. The distinction between rivalrous as living as non-rivalrous is sometimes sent to as jointness of render or subtractable or non-subtractable. Economist Paul Samuelson featured the distinction between private and public goods in 1954 by determining the concept of nonrival consumption. Economist Richard Musgrave followed on and added rivalry and excludability as criteria for establish consumption goods in 1959 and 1969.  

Rivalry

Most tangible goods, both durable and nondurable, are rival goods. A hammer is a durable rival good. One person's use of the hammer produced a significant barrier to others who desire to ownership that hammer at the same time. However, the first user does non "use up" the hammer, meaning that some rival goods can still be shared through time. An apple is a nondurable rival good: one time an apple is eaten, it is "used up" and can no longer be eaten by others. Non-tangible goods can also be rivalrous. Examples increase the ownership of radio spectra and domain names. In more general terms, most all private goods are rivalrous.