Significant place. Their adequate interpretation, management of their production, distribution and consumption are the key to the effective functioning and development of the national economy.

In a generalized sense good- this is a certain set of means that allow both a certain person and the population as a whole.

In the national economy, there is an extensive species composition of goods. Depending on their species, their essential characteristics are determined.

According to the nature of consumption, the following main types of goods are distinguished:

• public, characterized in that they are freely consumed by all members of society and cannot be used individually;
• individual(private goods) , characterized in that they can be used by only one member of society and are aimed at satisfying only his needs.

Public goods include both public and collective goods.

A collective good differs from a public good in that it can only be used by all members of society to a limited extent.

public goods- a set of goods and services that are provided to the population on a gratuitous basis, at the expense of the state's financial resources.

Public goods include, for example, roads, health care, education, services provided by state and municipal governments, and bridges.

Production and distribution of public goods refers to the main, its priority tasks. Here, the orientation of the state to reflect and realize the interests of the entire population of the country is manifested. The form in which the state today assumes responsibility for public goods took shape only in the 20th century. Today, the normal functioning of the national economy cannot be imagined without such generally accepted benefits as a free healthcare system, education, external and internal security of the state, social security and insurance. Public goods are also the work of services, liquidation. The significance of public goods lies in the fact that they are needed not by a part, but by the entire population.

Regarding the mechanism of production and distribution of public goods, the laws of the national economy are powerless - they are not able to work effectively in this area of ​​the market. Therefore, objectively, this task is assumed by the state - the state apparatus.

Distinctive features and classification of public goods

Public goods have the following specific features:

1. lack of competition in the consumption of public goods, due to the fact that the use of the good by one person does not in any way reduce the value and significance. The number of persons using the public good does not significantly affect its value characteristics. For example, flowers planted in a flower bed can be enjoyed by as many people as they like without causing a loss of their value;
2. indivisibility of the good due to the fact that the individual cannot independently determine the characteristics of the good, the volume of its production. For example, street lighting cannot be turned on and off at a certain time at the request of a certain person. He can only use or not use this good;
3. non-market nature of the value of the good, due to the fact that it is not subject to the laws of the free market and . The production of public goods cannot be regulated by the laws of the market, and therefore this function is assumed by the state, artificially determining the nature of the production and distribution of public goods;
4. the total and non-excludable nature of the good related to the fact that its consumption cannot be limited to a certain group of the population, or the fact that this is not appropriate. For example, street lighting, lawns are used by the entire population - this process cannot be localized within a certain framework.

According to the criterion of the scale of distribution within the national economy, the following types of benefits are distinguished:

• public public goods. These are benefits that matter and are distributed throughout the entire state. These include, for example, the activities of federal government bodies, the army, the Federal Security Service;
• local public goods. These are benefits that only a part of the population of the country has access to. Usually these boundaries are drawn in accordance with the regional affiliation of the population. These include, for example, city parks, city lighting.

Depending on the degree of accessibility, the following types of public goods are distinguished:

• excluded public goods. These are goods, the use of which can be limited to a certain circle of the population. For example, entrance to a museum can be by tickets, and therefore the recipients of this good can be limited, but the characteristics of the good will not be affected by this;
• non-excludable public goods. These are benefits, the use of which cannot be limited only to certain circles of the population. This is, for example, urban lighting.

Since the number of people consuming public goods is large, and charging for its provision is difficult, then in this case the only effective producer of goods can be the state.

In order to effectively provide the population with public goods, the state must have certain financial resources that are necessary for their production, which are formed as a result of taxes. - this is a kind of payment for the use of goods, carried out by the entire population.

The specifics of the consumption of public goods

The main feature of public goods is the boundary within which they are consumed. The specificity of production, distribution and consumption of goods depends on this.

Based on territorial boundaries, the following public goods are distinguished:

1. International public goods. These are the benefits to which it has access and which are consumed by the entire population, regardless of the territorial boundaries of the state. Such benefits include, for example, scientific and technical research and development, activities aimed at improving the environmental situation, the international monetary system. The production and distribution of public goods at the international level is quite difficult, since this requires a significant concentration of resources not only of one state, but of the entire world economy. Only in this case can any tangible efficiency and effectiveness be achieved.
2. National public goods. These are goods that are produced, distributed and consumed within a particular national economy. The scale of their distribution is clearly limited to the territory of a certain state and cannot go beyond them, for example, to the international level. These include, for example, the army, navy, and the activities of federal government bodies.
3. local public goods. These are goods that are produced, distributed and consumed not at the level of the entire state, but at the local level. The production of these goods is necessary when a certain region has needs that are different from the national needs. Such benefits include, for example, garbage collection, concerts, theaters, city parks.

All three levels of production, distribution and consumption of public goods are of great importance for the normal functioning of the national economy. In the process of its functioning, all of them actively interact with each other.

By taking over the production of public goods, the state thereby solves the most important problem of their consumption - integrativity. It consists in the fact that the costs necessary to charge for the use of most goods exceed the costs of their production. For example, it is inconceivable that it would make sense to charge for the use of street lighting. At the same time, financial resources are necessary for the production of goods. With help, the state can effectively charge for the use of goods.

One of the most important features of the consumption of public goods is the difficulty of effective control over the provision of the population with them, as well as the quantitative volumes of its production. Usually used for this, which reflect the quality and volume of public goods.

One of critical issues consumption of public goods is the unwillingness of the population to pay for them. This is a significant obstacle to improving the quality of public goods, and therefore the real demand for the good is underestimated. This is due to the fact that with a large number of consumers of a public good, the share of an individual in its use is insignificant, and therefore he seeks to evade the costs necessary for the production of goods. With a decrease in the number of people using the good, it is possible to effectively calculate the share of each person's participation in the use of the good and put on him the corresponding burden for its production.

Another feature of the consumption of public goods is the equation. Regardless of the contribution of each particular person to the production of the public good, he receives an equal amount with everyone else.

Production of public goods

Exclusively importance has the provision of an efficient or optimal volume of production of public goods.

Unlike a private good the public good is indivisible, cannot be sold piecemeal, and all users consume the same amount of the good. Therefore, it is not possible to price individual units of a public good. The impossibility of determining the price of certain units of a public good determines the presence of features of the definition of a public good. in this case is not a variable value. So the total demand for a public good reflects the marginal utility of all its available cash volume. Consumers must consume the entire volume of the produced good in its entirety. The aggregate demand for a private good is obtained by adding the individual demands, and the aggregate demand for a public good is determined by summing the individual marginal benefits derived from the available amount of the good. The aggregate demand curve for a private good is formed by summing the individual demand curves along the horizontal axis (Figure 14.7), and the aggregate demand curve for a public good is formed by adding the individual demand curves along the vertical axis (Figure 14.8).

The specificity of public goods is that their consumption is always accompanied by positive effects for everyone. Therefore, society is interested in providing such benefits to all consumers. Hence, the problem of public goods is not in distribution, but in ensuring the optimal volume of their production. The solution to the problem is due to the use general principle: a good must be produced to the extent that the marginal social benefits, expressed as the sum of the marginal benefits of all consumers, are equalized with the marginal social costs of its production.

Despite the fact that many environmental problems can be solved by transferring environmental objects and natural resources to private ownership, there is a situation where this approach does not work. As noted above, the environment performs the function of a public good that provides the vital conditions for human existence, and a public good, by definition, has a number of properties that make its privatization impossible.

To understand the essence of the environment as a public good, it is important to draw a line between two opposite types of economic goods - a pure private and a pure public good. At the same time, it should be noted that the public good is economic, that is, its creation consumes resources, the supply of which is limited, and it is subject to the economic problems of scarcity and choice.

pure private good consumed individually as it can be divided into parts. Therefore, it can be acquired in private ownership, depriving other entities of the opportunity to use it free of charge. This property of a pure private good is called excludability. As a result, competition between potential consumers arises. Thus, a pure private good is characterized by divisibility, excludability and competitiveness.

pure public good inherent indivisibility, and it can only be used in conjunction with other individuals. At the same time, access to the use of a pure public good is free, that is, it can be used by those subjects who have not paid for it.

The differences between net private and net public goods can be tabulated (see table 1). Accounting for these differences plays a serious role in environmental policy,

since the quality of the environment is ensured through the implementation of state environmental programs financed from budgetary funds, and here it is important to distinguish between a pure public good and intermediate goods that combine certain features of a pure private and pure public good.

Table 1. Differences between a pure private and a pure public good

One example of an intermediate good is essential (socially significant) good (merit good), that is, such an economic good that, according to society, provides people with a decent existence, and therefore all citizens should have access to it, regardless of social status and financial situation. Although essential goods are indivisible, there are ways in which some subjects can be deprived of access to these goods, and there is also competition among consumers for their quantity and quality due to "congestion". Examples of essential goods are public libraries, public schools, and public radio and television broadcasting. However, some environmental benefits, such as sources of drinking water, may also have these properties.

Intermediates also include club (taxable) benefits. They are consumed in full and indivisible, but access to them is limited and allowed only for a certain category of people. These include hunting grounds, natural monuments, specially protected areas, etc.

Along with public environmental goods, there are resources that, on the one hand, are characterized by freedom of access, but, on the other hand, involve competition between consumers either for the quantity of the resource or for its quality. This is shared natural resources(common-pool resources), which include underground water sources, fish resources of the open sea, large water systems, assimilation potential of the environment, etc.

A feature of shared consumption resources is that none of the consumers is interested in their economical use. Access to them is free, and therefore everyone tries to get the maximum benefit from them, without caring about the interests of other people. Since most of these resources are exhaustible, their intensive use leads to depletion and degradation. This phenomenon, which was first studied by the American ecologist Garrett Hardin on the example of communal pastures, was called the Tragedy of the Commons.

The essence of this phenomenon is as follows. Let us suppose that a village community owns a pasture, the area of ​​which is limited, and every inhabitant of the village has the right to freely graze his livestock on it, receiving from this a corresponding benefit. The more cattle graze in the meadow, the worse its quality becomes. If the grazing is reduced, then the quality of the meadow will improve, but not a single member of the community will agree to this, because as a result, his income will decrease. Ultimately, there is a complete degradation of pastures. However, the "tragedy of the commons" concerns not only pastures, but also other types of natural shared resources, such as fish stocks in the high seas.

5.2. Demand for a public good. The free rider problem

Theoretically, it is possible to construct a graph of supply and demand in the market for a public good and determine its optimal output.

The demand curve for a public good coincides with the curve of the marginal social gain from its consumption, which is equal to the sum of the gains of all individual consumers of this good:

where MSB(marginal social benefit) – marginal social benefit; MB is the marginal gain of an individual consumer, .

In contrast to the market demand curve for a private good, which is built by adding the individual curves horizontally

demand, the market demand curve a for the public good is constructed by adding the individual demand curves vertically.

On the graph (Fig. 8), the abscissa shows the volume of output of the public good Q, and on the y-axis is its price P. Let us assume that the production of a public good is carried out at constant costs. Then the marginal social cost curve characterizing the supply of the public good S, is a horizontal line. The intersection of supply and demand curves gives the equilibrium price and optimal output of the public good. Therefore, the quality of the environment will be optimal Q*.

MB1

D=MSB= MB

Fig.8. Supply and demand in the public good market

However, in real life Determining the optimal output of a public good is not as easy as the graph shows. An adequate demand for a public good cannot be determined by the market because of the free rider problem. Since access to a public good is free, some actors choose not to pay for it, which means they do not participate in compensating the costs of its production. In turn, due to the fact that they do not pay for the product, the market does not capture their preferences and does not “see” their demand. This means that when constructing a market demand curve for a public good, part of the individual demand curves cannot be depicted, which means that the final value will be incorrect. Consequently, the true quantity demanded for the public good remains unknown, and therefore it is not possible to find the optimal quantity of output through the market.

These features of the demand for public goods make their production unprofitable for private business, and therefore providing

consumers are taken over by the state. It solves the free rider problem by per capita taxation of all citizens of the country – potential consumers of the public good. At the same time, he has to determine the optimal quality of the environment in other ways, replacing the market assessment.

A pure private good is a combination of competitiveness and exclusivity. A pure public good has two properties at the same time - non-rivalry and non-excludability. In real life, a pure private good and a pure public good can be represented as the extreme poles of the scale of economic goods, between which there are mixed goods of various kinds, the proximity of which to one or another pole is determined by the dominance of the properties of a private or public good. If pure public goods are characterized by perfect irreducibility and irreducibility of their consumption and use, then mixed goods are characterized by varying degrees of exclusion and partial diminution in the process of their consumption.

A mixed good, in contrast to a pure good, is an excludable public good, a good of joint consumption with selectivity, alternativeness of its use, with a decrease in its consumption. A mixed good can be an object of sale, i.e., be paid.

A type of excluded mixed good is an overloaded public good. It is non-excludable up to a certain threshold level, after which there is a shortage of this good for everyone, i.e. its overload. The use of a good beyond the threshold level by one person excludes another from consumption or reduces the possibility of consumption of such a good by another. Highways, bridges, and tunnels are typical examples of transshipable public goods. Up to a certain level, the utility of these goods remains the same for all consumers, and additional consumers do not worsen the position of other users. Here the problem of excess consumers is not worth it. However, starting at some point, such as when using highways during rush hours, the addition of additional consumers leads to traffic jams, reduced speeds, increased traffic hazards, and other inconveniences to others.

An overloaded public good, to a certain level, has the properties and features of a pure public good; access to it is free for all members of society. Beyond this level, it has the properties and features of a paid private good. By establishing a fee for the provision of congested public goods, the supply and demand for these goods are regulated and the rational use of the material and technical base for the production of such public goods is ensured, as well as their high quality is maintained.

Another type of mixed good is the restricted sharing good, commonly referred to as the club good. Here the principle of exclusivity does not apply to an individual, but to a group of people. Access to the consumption of this kind of mixed goods is limited by statutory requirements and membership fees. Typical examples of limited access mixed benefit organizations include interest clubs (such as a tennis club), voluntary homeowners' associations, and other self-governing community organizations. Here, the object of exclusion is not an individual member of society, not an individual consumer, but communities of people and a group of consumers.

Classifications (groupings) of public goods are made not only taking into account the possibility of exclusion and the degree of use (including diminishing consumption) of these goods, but also taking into account the criterion of external (external) effect. It can be positive (for example, the effect of raising the educational level of the population, improving health, developing science and culture, etc.) and negative (for example, damage environment and health of people in connection with the introduction of environmentally imperfect industries and technologies).

Externalities differ in the scale and duration of their impact. The combination of externalities, taking into account their scale and time lag of impact with public goods, makes it possible to distinguish the following types of pure public goods:

• - a pure public good, the external effect of which is of national and global significance (for example, discoveries in the field of fundamental science, world masterpieces of literature and culture, national standards, satellite communications, etc.);
• - pure public goods with regional and local effects (eg local radio and television, municipal police, fire department, recreational facilities, etc.).

The external effect can be combined with the excludable benefit of joint consumption and, in this regard, the following are distinguished: a socially significant good (a well-deserved good) and a good created in industries with a natural monopoly. Socially significant benefits include education, health care, culture and services of other sectors of the socio-cultural sphere.

A socially significant good has the properties of a private excluded good and the properties of a public good due to a positive effect. The contradictory nature of a socially significant good creates an objective basis for a conflict between current individual and long-term public preferences regarding the consumption and use of such goods. There is a need for state intervention to resolve this conflict in favor of public preferences and establish a mandatory order for the consumption of socially significant benefits. In accordance with the Constitution in modern society compulsory general education was introduced and a mandatory level of health care and social security was established. The state is forced to limit the freedom of consumers in order to protect them from themselves. Otherwise, with the freedom of consumer choice, there are no guarantees that a certain group of citizens will not prefer to spend their money on current consumption, rather than on education and other socially significant benefits. With the help of state paternalism, it becomes possible to mitigate the irrationality of individual consumer behavior. However, with the expansion of the sphere of socially significant benefits, with the inclusion in this sphere of transfer payments focused on a fair distribution of income, social stability, equality of opportunity, equal access of all members of society to socio-cultural services, there is a danger of establishing paternalistic despotism. According to the American professor J. Stiglitz, in conditions when the state assumes a large amount of paternalistic responsibility, one group of citizens can impose their will and preferences through power structures on other segments of the population, as well as their views on how to behave and what consume.

The benefits created in natural monopoly industries are excludable benefits of shared consumption, they are usually called quasi-public goods. These goods have more properties of a private good and less characteristic properties of a public good. The industries of natural monopoly include municipal production and supply of the population with electricity, gas, water, heat, as well as communications and transport, etc. The peculiarity of these industries is the large-scale production and high capital intensity, which requires significant initial capital to enter these industries. new competitors. This protects the market for products of natural monopolies from potential competitors.

In the branches of natural monopoly, the chances are more favorable for the enterprises operating there than for new forms. The former, compared with the latter, win in the price competition due to the use of capacity reserves and the activation of the economies of scale factor.

Another feature of natural monopoly industries is the transmission technology (network type of production), which excludes duplication and disaggregation, and this, consequently, hinders the creation of a competitive environment. Industries with a natural monopoly are collective industries. Along with production of a transmission, network nature, they include production and technological, economic structures of the usual type, the services and products of which are classified as private goods. Varieties of natural monopoly are unique Natural resources requiring a common, joint disposal, as well as a monopoly on an intellectual product (in particular, intellectual property rights).

The joint nature of the consumption of public goods determines the unity in the application of criteria for distinguishing public goods of various types and private goods. At the same time, this indicates the commonality of the state and public voluntary sectors, their belonging to a single social economy.

Foreign statistics give an approximate idea of ​​the relationship between various types public goods based on data on specific public expenditures for their production So, in the late 80s. in the United States, the share of public spending in gross domestic product (GDP) for net public goods was 9.1%, for socially significant goods - 6.1, and with the inclusion of social transfer payments - 17.8, for quasi-public goods - 4.5% (for production infrastructure and natural monopoly industries).

In Germany, in the same period, 8.2% of GDP was spent on net public goods, 31.2% on socially significant goods (including social transfers), 13.3% on socially significant goods proper, and 4.6% on other public goods. %. A similar picture is observed in other industrialized countries. It testifies that socially significant benefits are in the first place in public expenditures, pure public goods are in the second place, and other types of public goods are in the third place.

World economic science and economic practice refer to public goods those goods and services that the market does not supply, since their features are opposite to the properties of consumer goods. To determine their essence, one should recall the properties of previously studied private goods. The classification of goods is based on two criteria - the nature of the distribution of the utility of the good among consumers and the degree of its availability in consumption. In accordance with the first, signs of selectivity or non-selectivity are distinguished, and with the second - excludability and non-excludability.

Net private good (PWB) is a good, each unit of which can be sold to the consumer for a fee. It includes: food, clothing, individual transport, Appliances etc. Markets are ideally suited for the circulation of pure private goods, which have features of selectivity and exclusivity in consumption.

selectivity property in consumption means that private goods are acquired individually in accordance with the consumer's system of tastes and preferences. These goods are divisible, i.e. they act as aggregate independent units. The consumption of these goods by one person makes it impossible for them to be consumed by other people.

Exclusivity property due to the inaccessibility of these benefits to those who are not able to pay the market price for them. In the case of pure private goods, it is assumed that all costs of their production are fully borne by the producer of the goods, and all benefits accrue to the consumer. The price of a good corresponds to its marginal utility.

Net public good (PSG)- a good that is consumed collectively by all citizens, regardless of payment. Classic examples of public goods are the services of national defense, security agencies, prevention and response agencies. emergencies natural-climatic and technogenic nature whole line similar goods and services. The consumption of these goods is associated with significant positive externalities, which prevents their implementation through the price mechanism.

The main properties of pure public goods are: non-selectivity and non-excludability in consumption. Non-selectivity or non-competition, in consumption means that the addition of an additional consumer does not reduce the availability and utility of the good to others. For example, the birth of a child in the territory of the country does not reduce the amount of security provided to other citizens. Therefore, these goods are not competitive in consumption.

Non-excludability in consumption means the impossibility of forbidding additional consumers to use public goods without paying for them. A pure public good has a peculiar positive externality: once it is produced, it becomes available to everyone, which in turn generates excessively high exclusion costs for non-paying consumers. For example, it is impossible to deprive a resident of a country of defense services other than by expelling him from the country.

A pure public good is characterized by the following properties:

1. it is not divisible, i.e. the individual cannot choose the volume of consumption of such goods;

2. sharing, consumption;

3. The production and consumption of NSA is accompanied by external effects, usually positive;

4. The marginal cost (MC) provided by the PSC to an additional consumer is 0.

5. The consumption of NSCs does not affect the provision of its volume to other persons.

6. Inclusion in the consumption of BERs to an additional consumer will not reduce the benefits that existing consumers have.

In addition to the PSS, there are also 4 groups of public goods:

1. because classification features have different degrees of manifestation in different goods

2. because classification features can be combined in a different way

Additional 4 examples:

Communal public goods are goods characterized by a high degree of excess and a low degree of exclusion.

Feature: Restricting access to a good is associated with high costs.

Collective goods – high degree of exclusivity and low selectivity. Their specificity is that access to them can be limited by low costs.

Congested public goods are goods that are not competitive in consumption and are stored only within a certain number of consumers.

club public goods are goods whose availability is limited by membership in special organizations - clubs.

End of work -

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Introduction to Microeconomics

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Public Choice Theory
1.Methodology of public choice analysis. 2. Model of interaction between politicians and voters. bureaucracy model. Search for political rent. 3. Polit

Department of Economics and Management

Coursework in economic theory

on the topic:

Public goods as an economic category

Moscow 2008

Introduction

2. Features of the demand for public goods

3. Effective amount of the public good

4. Free rider problem

5. Provision of public goods through the market

6. Provision of public goods by the state

Conclusion

Bibliography

Introduction

An important function of the state in a market economy is the production of public goods and services (goods). A feature of public goods is that their utility extends to more than one person (national defense, bridges, flood protection, etc.). The production of such goods, as a rule, is not profitable for the private sector, but they are necessary for society as a whole, and the state takes over their production.

Public goods are goods, the benefits from the use of which are inseparably distributed throughout society, regardless of whether its individual representatives want to acquire this good or not.

Public goods have 2 characteristic properties:

1. Non-rivalry in consumption

2. Non-excludability.

Non-rivalry in consumption is that with an increase in the number of consumers of a public good, the utility delivered to each of the consumers never decreases. When providing a public good to an individual consumer, marginal cost = 0. And with an increase in consumers, Pareto improvement conditions are realized (Pareto improvements are such changes in economic situations in which no one loses compared to the previous state and at least some participants in economic life win).

Non-excludability means that the producer of a public good does not have the ability to voluntarily exclude any consumer from using this good. Providers of public goods are unable to enter into separate economic relationships with each of their consumers.

Public goods are paid for by general taxation rather than being bought by individual consumers in the market. An example of a public good is the national defense system, since it concerns everyone and everyone equally.

1. Classification of economic goods

The classification of goods is based on two criteria - the degree of availability of the good in consumption and the nature of the distribution of the utility of the good among consumers in the process of its consumption. In accordance with the first criterion, signs of the exclusivity or non-excludability of a good are distinguished, with the second - the selectivity or non-selectivity of a good.

Exclusivity in consumption means that the possession of a good by one subject excludes the availability of this good to others. In this case, the consumption of the good is possible only on the basis of an equivalent (market) exchange. Non-excludability in consumption means the impossibility of preventing anyone from participating in the consumption of the good. In accordance with this principle, even persons who have not paid for a benefit cannot be excluded from the number of consumers.

Selective consumption means that the receipt of certain benefits from the consumption of a given good by one subject makes it impossible for another subject to do the same. The essence of this feature is manifested in the fact that consumers are forced to compete for the right to consume a good, which is why it is sometimes called the principle of competitiveness in consumption. Indiscriminate consumption means that the receipt of benefits from the consumption of a good by one subject does not limit the possibility of obtaining the same benefits for others. Such a good is considered non-competitive, and its consumption by any entity in any quantity does not limit the volume of its consumption for other entities. In accordance with these criteria, goods are divided into pure and public.

A good that is available in consumption and brings utility only to its owner is pure private good.

pure private good It is a good that has features of selectivity and exclusivity. The consumption of such a good by one subject prevents the same for others and brings utility only to its owner. The purchase of a portion of ice cream by someone excludes its availability to others, and the utility contained in it is consumed exclusively by the buyer. Possessing a high degree of selectivity and exclusivity, such goods can be valued and sold by the piece and, in this sense, are the most suitable for market turnover.

A good, the provision of which to an individual cannot be provided without the provision to others, and which is consumed jointly, is pure public good.

A pure public good is characterized by features of non-selectivity and non-excludability. No one can be excluded from the number of consumers of such a good, and its consumption by one subject does not limit its usefulness to others. Every individual citizen enjoys the benefits of national defense without compromising the utility that others derive from it. At the same time, no one can be excluded from the number of consumers of this good. Pure public goods have a number of specific characteristics. The absolute non-selectivity inherent in them means that 1) any consumption by someone of a pure public good does not affect the provision of its amount to others; 2) the inclusion of additional consumers in the consumption of the good does not reduce the benefits derived from the consumption of the good by existing consumers; 3) the marginal cost of providing the good to an additional consumer is zero.

Rice. No. 1. The marginal cost of providing a pure public good

The complete non-excludability characteristic of pure public goods indicates that: 1) these goods are indivisible, therefore, 2) they cannot be divided into units of individual consumption and sold individually, which means that 3) they are consumed together. Due to these features, pure public goods cannot be produced through the market. Home them distinguishing feature is that the consumption of such a good is always accompanied by a positive effect for all. Therefore, the essence of the problem of pure public goods is not in distribution, but in ensuring the optimal volume of their production. Typical examples of pure public goods are national defense, the fire department, and law enforcement.

The "world of goods" is not limited to pure private and pure public goods. First, the features used to classify goods have different degrees of manifestation in relation to each individual good. Both goods may have a sign, for example, of non-excludability (excludability, selectivity, non-selectivity), but one of them is to a greater extent, and the other to a lesser extent. Secondly, the features characterizing the benefits can have a variety of combinations: selectivity - non-excludability, excludability - non-selectivity. Parking spaces in the public car park are available to everyone else, giving it a selective streak. Goods characterized by a high degree of selectivity and a low degree of exclusivity are called common good, or the benefits of shared consumption. Their specificity lies in the fact that despite the high degree of competition in consumption, the restriction of access to the good is associated with high costs. Most often, these are the benefits provided by municipalities - public parks, beaches, other public places, which is why they are also called communal. The joint nature of the consumption of such goods causes a high degree of competition in relation to their use, which is subject to the principle of "first come, first used".

Competition in the consumption of a good may be low. The reception of a television signal via cable television by one entity does not reduce the possibility of the same for other users, moreover, with zero marginal cost. However, the introduction of network connection fees is a factor in the exclusion of this good. Goods with a high degree of exclusivity and a low degree of selectivity are called excluded public, or collective benefits. They can be cable TV, schooling, libraries. The specificity of this type of goods lies in the fact that access to their consumption can be limited with negligible costs. In some cases, the degree of non-selectivity of a good decreases as its consumers grow, and from a certain point (“overload point”), the provision of such a good to additional consumption is associated with an increase in the marginal cost of provision, i.e. reduced utility for existing consumers. Goods whose non-rivalry in consumption persists only within a certain number of consumers are called overloaded public goods. Typical examples of such benefits are transport infrastructure (roads, bridges, ferries) and cultural facilities (libraries, museums, etc.). As the number of users increases, the congestion of the roadway increases and the speed of movement (utility) decreases. The point here is that additional users do not reduce the availability of a good to others only up to a certain point.