1.1 Rival and non-rival goods

Rival goods

Before we can go too deep into anti-rivalry, we need to go back to the basics – rivalry.

Goods are rival when you cannot share them. Once a good is consumed, it cannot be used by another person. Once an apple is eaten, it cannot be eaten by someone else. Plane tickets can only be used once, by one person. A single diamond can only be mined once.

Non-rival goods

Non-rival goods, on the other hand, can be used repeatedly and by multiple people. Think about, for example, a television show, a museum, street lights, or a public beach.

The ability to share goods is referred to as subtractability. A good is rival if you use it up (or subtract from the pool of goods). A good is non-rival if you do not use it up (nothing is subtracted). Rivalry and subtractability are essentially synonyms.

When we talk about goods, we are talking about objects or products that provide some use or value to the public. Goods can be tangible, such as a book, a cup of coffee or firewood. Not all goods are physical, such as a song or a visit to the doctor’s office.

Can non-rival goods become rival?

A public road may seem, at first, to be non-rival. It is open for anyone to use, it can be used over and over again, and (since it is public) it is available for all to use.

If traffic becomes busier and the road is full, it is now rival, as new cars cannot join. This phenomenon is referred to as congestion.