Question

Consider the case of intellectual property rights, such as the ownership of a copyright by an author of a book. Would you characterize the copyright as a non-rivalrous good? However, is such a copyright also non-excludable? Justify your answer with economic reasoning.

Answer 1

Ans) Public goods are non excludable and non rivalrous in nature.

Non excludable means no one can be excluded from using it and non rivalrous means ones usage does not reduce its availability for others.

Now, a book if printed is rivalrous in nature because one's usage of books reduce its availability for others. While if book is e-book then it is non rivalrous because one's usage does not reduce its availability for others.

Copyright books are excludable in nature because people can be barred from using it. As only the one who pays right price can be authorised to use it.