Goods and services

Public goods

Traits

Non-exclusion

Once the good has been provided - possibly with the support of certain people, there is no good way of excluding others (including unconnected ’free-riders’) from using it.

Non-rivalry

Use of the good by a person does not make it less enjoyable or worthwhile for other users.

Examples

Fresh air, pleasant weather. More controversial examples: roads.

Funding

Provision of public goods is often done by the government.

Private sponsorship

A limited group of consumers (aka the K-group) could sponsor public goods - and tolerate free-riders.

Media

Information in the form of songs, visual performances, books which were once private, is increasingly being digitally copied and distributed using computers - mainly by enthusiasts acting against the wishes of publishers, who hold the copyright, and often with the approval of the original artists.

Videos

Websites like youtube allow sharing videos. Copyrighted work may be sought using services like projectfreetv etc..

Books

bookz or ebooks channels on the undernet (good as of 2004-2011).

Private

Aka market goods. Eg: food.

Access vs ownership

For low-idling items, like a microwave: it is better to own the item. High idling items, like a power drill, car, jewels are better rented.

Price and rationing

Rationing

Rationing is a mechanism for distributing goods to people.

Price rationing

Price balances demand and supply in the market. The pricing of goods with money is described in the money section.

Industrial vs investment demand

Prices are driven often by current demand and supply: aka industrial demand. Prices may also be driven by speculation about future demand and supply relative to other goods/ currency: aka investment demand. Investment demand can be very fickle, and speculation may be mistaken.

Elasticity of demand

The efficacy of increasing price in decreasing demand varies. In case of elastic demand/ prices, demand smoothly decreases with increasing price.

In case of inelastic demand, consumers are willing to pay higher price without decreasing demand. This is especially true in case essential commodities - like petroleum or food; or in case of addictive commodities - like psychotropic drugs.

Non-price rationing

Artificially restricts demand to keep price below the equilibrium. Ensures that rich folk don’t get everything in the time of shortages. Ration coupons, books, queues, taxes.

Swaps/ barter

Internet has facilitated barter: Eg: swaptree for books.