Level of rivalry
|
Degree of rivalry = 0 |
Degree of rivalry = 1 |
|
|---|---|---|
|
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 rivalry degree is on markets in, one extent than demand another demand as rivals to the good and to the benefit of conceiving.
In addition to the degree of exclusion , the degree of rivalry is an important variable for dividing the goods space into subspaces.
- example
If you live in the protected area of a dyke , the benefits you get from the dyke are not diminished by the influx of other people into the protected area. Every consumer receives his benefit regardless of whether there are other users. In this case, the degree of rivalry is zero.