Privileged group

In [[economics]], a '''privileged group''' is one possible condition for the production of [[Public good (economics)|public good]]s.

A privileged group contains at least one individual that benefits more from a public good than its production costs. Therefore, the good will be produced although other members of the group benefit without paying. However, this [[free rider problem]] may still result in an undersupply of the good compared to the [[Lindahl equilibrium]].

==Resources== * {{cite book | author=Olson, Mancur | author-link=Mancur Olson | title=The Logic of Collective Action: Public Goods and the Theory of Groups | publisher=[[Harvard University Press]] | year=1965 | edition=1st | isbn=0-674-53751-3 | url-access=registration | url=https://archive.org/details/logicofcollectiv00olso_0 }}

==See also== * [[Public good (economics)]] * [[Collective action]]

[[Category:Public economics]]

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