Rivalry (economics)

{{Short description|Property of economic goods}} [[File:Fish0192 - Flickr - NOAA Photo Library.jpg|thumb|upright|Wild fish stocks are a rivalrous good, as the amount of fish caught by one boat reduces the number of fish available to be caught by others.]]

In [[economics]], a [[Good (economics)|good]] is said to be '''rivalrous''' or a '''rival''' if its [[Consumption (economics)|consumption]] by one [[consumer]] prevents simultaneous consumption by other consumers,<ref>{{cite book |author=David L. Weimer |author2=Aidan R. Vining |title=Policy Analysis: Concepts and Practice |year=2005 |url=https://archive.org/details/policyanalysisco0000weim_u3o9/page/72 |publisher=Pearson: Prentice Hall |id=Fourth Edition |isbn=0-13-183001-5 |page=[https://archive.org/details/policyanalysisco0000weim_u3o9/page/72 72] }}</ref> or if [[Consumption (economics)|consumption]] by one party reduces the ability of another party to consume it. A good is considered '''non-rivalrous''' or '''non-rival''' if, for any level of production, the cost of providing it to a marginal (additional) individual is zero.<ref>Cornes, R., T. Sandler. 1986. The theory of externalities, public goods, and club goods. Cambridge University Press.</ref> A good is [[Anti-rival good|anti-rivalrous]] and inclusive if each person benefits more when other people consume it.

A good can be placed along a continuum from rivalrous through non-rivalrous to anti-rivalrous. The distinction between rivalrous and non-rivalrous is sometimes referred to as '''jointness of supply''' or '''subtractable''' or '''non-subtractable'''.<ref>Hess, C., E. Ostrom. 2006. Introduction. C. Hess, E. Ostrom, eds. Understanding Knowledge as a Commons: From Theory to Practice. The MIT Press, Cambridge, Massachusetts</ref> Economist [[Paul Samuelson]] made the distinction between private and public goods in 1954 by introducing the concept of nonrival consumption. Economist [[Richard Musgrave (economist)|Richard Musgrave]] followed on and added rivalry and [[excludability]] as criteria for defining consumption goods in 1959 and 1969.<ref>{{Cite journal|last1=Apesteguia|first1=J|last2=Maier-Rigaud|first2=F|date=2006|title=The Role of Rivalry: Public Goods Versus Common-Pool Resources|url=https://journals.sagepub.com/doi/10.1177/0022002706290433|journal=Journal of Conflict Resolution|volume=50|pages=647|doi=10.1177/0022002706290433|s2cid=6738663|via=SAGE journals|url-access=subscription}}</ref>

== Rivalry ==

Most [[tangible property|tangible]] goods, both [[durable good|durable]] and nondurable, are rival goods. A hammer is a durable rival good. One person's use of the hammer prevents others from using the hammer at the same time. However, some rival goods can still be shared through time; the first user does not generally "use up" the hammer. An apple is a nondurable rival good: once an apple is eaten, it is "used up" and can no longer be eaten by others. Non-tangible goods can also be rivalrous. Examples include the ownership of [[radio spectrum|radio spectra]] and [[domain name]]s. In more general terms, almost all [[private goods]] are rivalrous.

== Non-rivalry ==

In contrast, non-rival goods may be consumed by one consumer without preventing simultaneous consumption by others. Most examples of non-rival goods are intangible. [[Broadcast television]] is an example of a non-rival good; when a consumer turns on a TV set, this does not prevent the TV in another consumer's house from working. The television itself is a rival good, but television broadcasts are non-rival goods. Other examples of non-rival goods include a beautiful scenic [[Panorama|view]], national defense, clean air, street lights, and public safety. More generally, most [[intellectual property]] is non-rival. In fact, certain types of intellectual property become ''more'' valuable as more people consume them ([[anti-rival good|anti-rival]]). For example, the more people use a particular [[language]], the more valuable that language becomes.

Non-rivalry does not imply that the total production costs are low, but that the ''[[Marginal cost|marginal]]'' production costs are zero. In reality, few goods are completely non-rival as rivalry can emerge at certain levels. For instance, use of public roads, the Internet, or police/law courts is non-rival up to a certain capacity, after which congestion means that each additional user decreases speed for others. For that, recent economic theory views rivalry as a continuum, not as a [[Binary classification|binary category]],<ref>Leach, J. 2004. A course in public economics. Cambridge University Press: 155–56</ref> where many goods are somewhere between the two extremes of completely rival and completely non-rival. A perfectly non-rival good can be consumed simultaneously by an unlimited number of consumers.

== Anti-rivalry == {{Main|Anti-rival good}} Goods are anti-rivalrous and inclusive if the consumer's enjoyment increases with how many others consume the good. The concept was introduced by [[Steven Weber (professor)|Steven Weber]] (2004), saying that when more people use [[free and open-source software]], it becomes easier and more powerful for all users.<ref>{{cite Q|Q54641592}}.</ref> Lessig noted that any [[natural language]] is anti-rivalrous, because its utility increases with how much it is used by others.<ref>{{cite Q|Q104836676}}.</ref> Cooper noted that efforts to [[climate change mitigation|combat climate change]] are perversely anti-rivalrous—any country acting as a free rider will benefit from the efforts of others to combat this problem, even while not contributing itself.<ref>{{cite Q|Q63090519}}.</ref>

== See also == * [[Free-rider problem]] * [[Metcalfe's law]] * [[Network effect]] * [[Rent-seeking]]

== References == {{reflist}}

[[Category:Goods]] [[Category:Rivalry]]