Rivalry (economics)

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.

[3] Economist Paul Samuelson made the distinction between private and public goods in 1954 by introducing the concept of nonrival consumption.

Economist Richard Musgrave followed on and added rivalry and excludability as criteria for defining consumption goods in 1959 and 1969.

Other examples of non-rival goods include a beautiful scenic view, national defense, clean air, street lights, and public safety.

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.

The concept was introduced by Steven Weber (2004), saying that when more people use free and open-source software, it becomes easier and more powerful for all users.

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.