In economics, a privileged group is one possible condition for the production of public goods.
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.
Famous quotes containing the words privileged and/or group:
“The government of the United States is a device for maintaining in perpetuity the rights of the people, with the ultimate extinction of all privileged classes.”
—Calvin Coolidge (1872–1933)
“With a group of bankers I always had the feeling that success was measured by the extent one gave nothing away.”
—Francis Aungier, Pakenham, 7th Earl Longford (b. 1905)