Why do markets generally provide private goods?
Markets generally provide private goods because they are excludable and rivalrous. A rivalrous good is a good by which its consumption for one person prevents someone else from consuming it. For example, were you to purchase 20 chocolate bars, and there are only 20 bars that a supplier is willing to supply at a given moment in time, your purchase has excluded 20 other potential buyers from purchasing. An excludable good is a good that can prevent a consumer(s) from consuming the given good on a certain criterion, usually on the basis of affordability. You would like a Ferrari, but it has excluded you from purchasing it because it is out of the range of what you can afford (or at least, I assume!) In a market, suppliers will abdicate from providing public goods (goods by which are non-excludable and non-rivalrous) because it creates an issue of free-riders consuming the good. A Free-Rider is a person who does not contribute to the provision of a good yet still reaps the benefits from th
