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Non-excludability

Definition. Non-excludability is the property of a good for which it is impossible or prohibitively costly to prevent people who do not pay from consuming it. Because access cannot be confined to paying users, sellers cannot charge a price, so private firms have no incentive to provide the good.

Non-excludability gives rise to the free rider problem, since consumers can enjoy the good without paying. It is one of the two defining characteristics of a pure public good, alongside non-rivalry.

This term belongs to Public Goods in A Level Economics. Read the full chapter for the diagrams, worked examples and exam technique.

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