What is a private good?
private goods are goods that are intended for consumption of the owners of the obtained goods. This differs from public goods that provide some kind of benefits and usefulness for a wider range of people. With private good, it focuses on the benefits that the individual receives after purchasing the product from the supplier or manufacturer. Almost any type of private goods are produced as a means of profit.
Two properties are usually present with any type of private goods. One has to deal with the issue of exclusivity. The owner of these goods has complete control over who can benefit from using the product, or even receive some kind of advantage in anyone. At the same time, it has a second characteristic to do with the consumption of the product in a way that excludes anyone other than the owner who receives any type of direct or indirect benefit from good.
One of the simplest ways to understand the concept of private good is to consider two examples of these types of products. When a consumer bathHamburger, becomes the owner of this product. At this point, the owner may decide that the whole hamburger personally consumes, an event that effectively excludes anyone else of the product. The owner can also decide to share a part of the hamburger with one person and at the same time deny access to the product by another person, in both situations the owner decides who, if someone has, has access to the product and whether someone other than the owner receives any good benefit.
Along with food, there are other examples of private good ownership, which effectively allow the owner to control access to good. Cars are a common example, because the owner decides who is and is not allowed to run the vehicle, or even who can ride on one of the passenger seats. Clothing is also a private good, with the owner either wearing purchases exclusively, or has direct control over who else can borrow one of the clothes. Even goods such as personal electronics fall into this cathegoRie, with the owners determining who can listen to CD players, use internet tablets or borrow laptops. In all these scenarios, the owner takes control of private good and can use it in any way that he considers appropriate.