What Is a Rival Good?

A rival good is a product consumed by one person, which prevents it from being used by another. Most common household products and supermarket foods are rival goods. For instance, a bar of soap or a bottle of beer can only be consumed by a single person. Competition to obtain the good can create demand and drive up its price.

Understanding Rival Goods

A rival good can't be used by two people at the same time. The rivalry isn't between two products or companies (like say, Coke and Pepsi), but rather, between two individuals over a single can of soda. If someone drinks the soda, it is no longer available for anybody else to consume.

Because it can only be used by one person, competition to purchase it is created. 澳洲幸运5官方开奖结果体彩网:Consumers become rivals in an attempt to obtain it. How much competition depends on availability. If there are many soda cans on supermarket shelves, it's easy to get another one, provided there are thousands of peopꦓle who aren't eager to buy them at that moment.

If the product is rare, such as a limited edition designer t-shirt, consumers may engage in a 澳洲幸运5官方开奖结果体彩网:price war and be willing to pay more to get their hands on it. Competition for this type of rival good is also compounded by the availability of apparel in ꦏsizes that meet each consumer’s needs. Manufacturers may only produce limited quantities for certain sizes.

Rival goods can be durable (like food) and nondurable. Common examples of nondurable rival goods include clothing, electronic goods, cars, plane tickets, and houses. Some can be reused by another consumer at a later stage like a 🌱skateboard after the current owner is finished with it.

Special Considerations

The competitive nature of rival goods can increase their value to the individuals who seek them. This is especially true for the travel, ho🍸spitality, and entertainment industries. Goods that꧂ are rival in consumption can include seats on an airplane or for a Broadway performance.

When demand is high for rival goods, businesses can exert more 澳洲幸运5官方开奖结果体彩网:pricing power. Limited availabili💖ty coupled with demand gives businesses༺ pricing power.

Demand for rival goods drives retail sales during holiday periods as consumers race to buy gifts before they sell out or while certain 澳洲幸运5官方开奖结果体彩网:discounts are available. This type of shopping behavior has been used to retailers’ advantage, particularly during 澳洲幸运5官方开奖结果体彩网:Black Friday sales events.

Rival Goods vs. Non-Rival Goods

Goods are either classified as rival or non-rival. A rival good is something that can only be possessed or consumed by a single user. A good that can be consumed or possessed by multiple users is said to be a non-rival good.

Internet sites and radio stations are examples of non-rival goods. This means that many people can access them at the same time and they can be consumed over and over again without impacting their quality or running the risk that supply will be depleted.

Another example of a non-rival good is a streaming service like Netflix. Signing up gives you access to shows, movies, an💮d other content. Altho𓆏ugh you've subscribed to the service, it doesn't interfere or prevent other consumers from accessing the same content offered by the company.

Rival Goods vs. Non-Excludable Goods

Non-excludable goods are products that cannot exclude a certain individual or group from using thꩲem. A public road is a non-excludable good. Everyone has access to a public road, even if they are just walking on it rather than driving a vehicle.

The opposite of a non-excludable good is an excludable good, which is a good that some people are restricted from using. Excludable goods are private goods, while non-excludable goods are public goods. A rival good is a type of excludable good because it can only be possessed or consumed by a single user.

The Bottom Line

Economists define products🎶💞 as rival or non-rival goods as a way to analyze patterns of consumption and the workings of the law of supply and demand.

A rival good is restricted in its availability, which can cause demand to outstrip supply and its price to increase. A non-rival good is relatively unaffected by demand as it can be consumed by many people at the same time.