Congestion can change a good’s classification
Rivalry is sometimes a matter of degree. A toll road with little traffic is most accurately described as nonexcludable and nonrival at every traffic level nonexcludable but rival even without congestion excludable and fully rival at every traffic level excludable and nonrival before congestion nonexcludable before tolls but excludable afterward excludable and nonrival before congestion […]
Common resources create excessive use
Each user captures a benefit while sharing depletion cost. Why may an unregulated common resource be overused? Each user bears the full depletion cost of an additional unit. Users capture each benefit but share the depletion costs. The resource is nonrival in consumption at every quantity. Users can readily exclude anyone who does not pay. […]
