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:
“One might feel that, at my age, I should look on life with more gravity. After all, I’ve been privileged to listen, firsthand, to some of the most profound thinkers of my day ... who were all beset by gloom over the condition the world had gotten into. Then why can’t I view it with anything but amusement?”
—Anita Loos (1894–1981)
“Unless a group of workers know their work is under surveillance, that they are being rated as fairly as human beings, with the fallibility that goes with human judgment, can rate them, and that at least an attempt is made to measure their worth to an organization in relative terms, they are likely to sink back on length of service as the sole reason for retention and promotion.”
—Mary Barnett Gilson (1877–?)