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 novel does not seek to establish a privileged language but it insists upon the freedom to portray and analyse the struggle between the different contestants for such privileges.”
—Salman Rushdie (b. 1947)
“For me, as a beginning novelist, all other living writers form a control group for whom the world is a placebo.”
—Nicholson Baker (b. 1957)