Welcome back to another installment of Young Economics. Today, I break down the differences between rivalrous and excludable goods with perhaps the savior of online education, Khan Academy.
Rivalry occurs in an economy when one person’s consumption of one unit of a good or service means no one else is able to consume it. Contrastingly, nonrival suggests that one person’s consumption of a good does not interfere with another’s consumption.
Excludability is defined as the inability to a consume a good so long as it is not paid for. Therefore, a nonexcludable good constitutes as something that is consumed whether the good is paid for, as it is impossible to be prevented.
There are many scenarios in which a good may be any combination of both rival and excludable, rival and non excludable, non rival and non excludable, etc. For example, private goods, such as my Oreos, which I refuse to share with anyone, are both rival and excludable. My consumption of America’s favorite cookie directly inhibits my roommate or brother from coming along and trying to consume my delectable cookies. Moreover, there is no legal way for me to eat Oreos unless I pay for them…I wonder how much money I spend a year on this Kryptonite. Other private goods include, clothing (attention sneakerheads), haircuts, and even the laundry at college.
Then there are public goods, or non rival and non excludable goods, enter Khan Academy. In a lot of cases, public goods are supplied by the government, like national defense and public schooling, but in this situation a public good, such as education, is being supplied by the super teacher, Salman Khan. Khan Academy is a non-profit educational website that was created to provide “a free, world-class education for anyone, anywhere.” My use of Khan Academy on their website or on YouTube, while I’m cramming for finals has no baring on the eighth grader in Texas trying to learn pre-Algebra. You see, Khan Academy is so innovative and revolutionary because it has completely altered the perception of public education. We all know that the public educational system in the United States needs reform, but with this website everyone of all ages can receive a free, world-class education without even leaving their home. I guess that’s why Google and the Gates Foundation have each donated over $1 million dollars to the organization. Avail yourself to the website , don’t you have some studying to do?