Degree of exclusion
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Degree of rivalry = 0 |
Degree of rivalry = 1 |
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|---|---|---|
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Degree of exclusion = 0 |
public good (e.g. dyke) |
Common good (e.g. overcrowded inner city street) |
|
Degree of Exclusion = 1 |
Club good (e.g. pay TV) |
Private goods (e.g. ice cream) |
The degree of exclusion or the extent to which it can be excluded under private law indicates the extent to which one (other) customer can be excluded from consuming the respective good at a reasonable cost . The (degree of) excludability is also used synonymously .
In addition to the degree of rivalry , the degree of exclusion is an important variable for dividing the goods space into subspaces.
- example
Once a dyke has been built, no one living behind it can be excluded from using the protection against flooding provided by the dyke . There is a case of non-excludability or a degree of exclusion of zero.