Positional Goods: A Diagrammatic Exposition
Quaderni del Dipartimento di Economia Politica No. 575
10 Pages Posted: 21 Nov 2009 Last revised: 23 Jul 2014
Date Written: October 1, 2009
Positional goods and public goods share the characteristic of “publicness” in terms of consumption; i.e., given the consumption of one party, in the case of a positional good, the other must consume a corresponding negative amount of what the first party consumes, while in the case of public good, the other must consume a corresponding positive amount. Hence, we can offer a diagrammatic illustration for positional goods that is similar to the Samuelsonian one for public goods.
Keywords: Positional Good, Externality, Market Failure
JEL Classification: D52, D61, D62
Suggested Citation: Suggested Citation