# Privileged group

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In [economics](/source/Economics), a **privileged group** is one possible condition for the production of [public goods](/source/Public_good_(economics)).

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](/source/Free_rider_problem) may still result in an undersupply of the good compared to the [Lindahl equilibrium](/source/Lindahl_equilibrium).

## Resources

- [Olson, Mancur](/source/Mancur_Olson) (1965). [*The Logic of Collective Action: Public Goods and the Theory of Groups*](https://archive.org/details/logicofcollectiv00olso_0) (1st ed.). [Harvard University Press](/source/Harvard_University_Press). [ISBN](/source/ISBN_(identifier)) [0-674-53751-3](https://en.wikipedia.org/wiki/Special:BookSources/0-674-53751-3).

## See also

- [Public good (economics)](/source/Public_good_(economics))

- [Collective action](/source/Collective_action)

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