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 statements of science are hearsay, reports from a world outside the world we know. What the poet tells us has long been known to us all, and forgotten. His knowledge is of our world, the world we are both doomed and privileged to live in, and it is a knowledge of ourselves, of the human condition, the human predicament.”
—John Hall Wheelock (1886–1978)
“If the Russians have gone too far in subjecting the child and his peer group to conformity to a single set of values imposed by the adult society, perhaps we have reached the point of diminishing returns in allowing excessive autonomy and in failing to utilize the constructive potential of the peer group in developing social responsibility and consideration for others.”
—Urie Bronfenbrenner (b. 1917)