Club Goods

Definition

Club goods are goods that are excludable but non-rivalrous in consumption. This means that only those who pay for the good can access it, but one person's consumption does not diminish the availability of the good for others.

Related terms

Excludability: Excludability refers to the ability to prevent non-paying individuals from accessing or using a particular good or service.

Non-Rivalry: Non-rivalry describes a situation where one person's consumption of a good does not reduce its availability or utility for others.

Public Goods: Public goods are non-excludable and non-rivalrous in consumption, meaning they are available to all and one person's use does not diminish their availability.