collective goods

(noun)

items and resourcses that benefit everyone, and from which people cannot be excluded

Related Terms

Examples of collective goods in the following topics:

  • "Market Failure" and Property Rights

    • With the presence of externalities, public or collective goods and common property resources, the information generated by market transactions may be distorted and incorrect signals result in misallocation of resources.
    • One solution is to subsidize good X by the amount V*-A.
    • One solution is levy a tax of V*-A on good X.
    • A public good has two important characteristics.
    • A private market will not produce a public good.

  • Demand Function

    • An individual's demand function for a good (Good X) might be written:
    • In the case of public (or collective) goods, the consumption of national defense by one person (they are protected) does not preclude others from the same good.
    • A superior good is a special case of the normal good.
    • Goods may be related as substitutes (consumers perceive the goods as substitutes) or compliments (consumers use the goods together).
    • An increase in the price of good Z will reduce the quantity demanded for good Z.

  • Defining the Sample and Collecting Data

    • Defining the sample and collecting data are key parts of all empirical research, both qualitative and quantitative.
    • Sampling and data collection are a key component of this process.
    • In both cases, it behooves the researcher to create a concrete list of goals for collecting data.
    • Good data collection involves following the defined sampling process, keeping the data in time order, noting comments and other contextual events, and recording non-responses.
    • Similarly, sociologists must collect a sample of social information, often by surveying or interviewing a group of people.

  • Collecting Data

    • In marketing research, an example of data collection is when a consumer goods company hires a market research company to conduct in-home ethnographies and in-store shop-alongs in an effort to collect primary research data.
    • This is especially important in the data collection phase.
    • The data collected will be analysed and used to make marketing decisions.
    • Hence, it is vital that the data collection process be free of as much bias as possible.
    • There are many sources of information a marketer can use when collecting data.

  • Marginal Utility

    • Marginal utility of a good or service is the gain from an increase or loss from a decrease in the consumption of that good or service.
    • In economic terms, marginal utility of a good or service is the gain from an increase or loss from a decrease in the consumption of that good or service.
    • While this may fail to capture a specific individual's preferences and utility, it offers a good approximation based on everyone's collective preferences as defined by the market.

  • Product categories

    • Durable goods are tangible and survive many uses.
    • According to one convention, a durable good lasts more than one year.
    • Good examples include: gum, shaving cream, gas, batteries, and cosmetics.
    • Shopping goods are purchased only after consumers make comparisons with competing goods based on such attributes as price, quality, style, or color.
    • Examples in this group include collectable items, engagement rings, vacation homes, yachts, art works, luxury cars, and special concert tickets.

  • Recognition of Revenue After Delivery

    • When a sale of goods transaction carries a high degree of uncertainty regarding collectibility, a company must defer the recognition of revenue.
    • The unearned income is deferred (recorded as a liability) and then recognized to income when cash is collected.
    • Under this method, no revenue is recognized until cash collections exceed the seller's cost of the merchandise sold.
    • Delivery of goods or service may not be enough to allow for a business to recognize revenue on a sale if there is doubt that the customer will pay what it owes.
    • Differentiate between the installment sales method, the cost recover method and the deposit method to account for recognizing revenue after the delivery of goods

  • Normal Order

    • Normal order is the most compressed way to write a given collection of pitch classes.
    • Often, you'll be able to determine normal order intuitively using a keyboard or a clockface, but it's good to learn a process that will always give you the correct answer.
    • Write as a collection of pitch classes (eliminating duplicates) in ascending order and within a single octave.
    • Rewrite the collection beginning with the pitch class to the right of the largest interval and write your answer in square brackets.
    • Write as a collection of pitch classes (eliminating duplicates) in ascending order and within a single octave. {8,9,3}

  • Recognition of Revenue at Point of Sale or Delivery

    • Goods sold, especially retail goods, typically earn and recognize revenue at point of sale, which can also be the date of delivery if the buyer takes immediate ownership of the merchandise purchased.
    • Since most sales are made using credit rather than cash, the revenue on the sale is still recognized if collection of payment is reasonably assured.
    • When the transfer of ownership of goods sold is not immediate and delivery of the goods is required, the shipping terms of the sale dictate when revenue is recognized.
    • For goods shipped under FOB destination, ownership passes to the buyer when the goods arrive at the buyer's receiving dock; at this point, the seller has completed the sales transaction and revenue has been earned and is recorded.
    • If the shipping terms are FOB shipping point, ownership passes to the buyer when the goods leave the seller's shipping dock, thus the sale of the goods is complete and the seller can recognize the earned revenue.

  • Defining and Defending Property Rights

    • Resources can be owned and used by governments, collective bodies, or individuals.
    • Common property: also called collective property, this type of property is owned by a group of individuals.
    • For example, suppose a thief steals a good.
    • The thief has economic property right to the good because it is in his possession - he has the ability to use the good.
    • However, the thief does not have legal property right to use the good - by law he is not permitted to have access to or use of the good.