Private Good - Example of A Private Good

Example of A Private Good

An example of the private good is bread: bread eaten by a given person cannot be consumed by another (rivalry), and it is easy for a baker to refuse to trade a loaf (exclusive).

To illustrate the horizontal summation characteristic, assume there are only 2 people in this economy and that:

Person A will purchase: 0 loafs of bread at $4, 1 loaf of bread at $3, 2 loafs of bread at $2, and 3 loafs of bread at $1
Person B will purchase: 0 loafs of bread at $6, 1 loafs of bread at $5, 2 loafs of bread at $4, 3 loafs of bread at $3, 4 loafs of bread at $2, and 5 loafs of bread at $1

As a result, a new market demand curve can be derived with the following results:

Price per Loaf of Bread	Loaf of Bread
	Person A	Person B	Total
$6	0	0	0
$5	0	1	1
$4	0	2	2
$3	1	3	4
$2	2	4	6
$1	3	5	8

Types of goods

public good - private good (includes household goods) - common good - common-pool resource - club good - anti-rival good

(non-)rivalrous good and (non-)excludable good
complementary good vs. substitute good vs. independent good
free good vs. positional good

(non-)durable good - intermediate good (producer good) - final good - capital good

inferior good - normal good (necessity good) - neutral good - ordinary good - Giffen good - luxury good - Veblen good - superior good

search good - (post-)experience good - credence good

merit good - demerit good

damaged good - composite good - intangible good

Private good can also defined as an exclusive production of goods.

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Famous quotes containing the word private:

“stop the darkness and its amputations
and find the real McCoy
in the private holiness
of my hands.”
—Anne Sexton (1928–1974)