Public goods possess three distinct characteristics, namely non-rivalry, non-excludability, and non-divisibility.
1. Non-rivalry: This attribute implies two primary aspects. First, the marginal cost is zero. The marginal cost referred to here is the additional cost incurred by the supplier due to an increase in the number of consumers. For instance, adding a new television viewer does not result in an increase in transmission costs. Second, the marginal congestion cost is zero. The consumption of each consumer does not impact the quantity or quality of consumption for other consumers. Examples of public goods with non-rivalry include defense, foreign affairs, legislation, justice, as well as public security, environmental protection, industrial and commercial administration, and other administrative services provided by the government. The consumption of such goods is non-competitive; it does not diminish the consumption of any individual consumer when new consumers are added, nor does it increase the cost of the product.
2. Non-excludability: This characteristic indicates that certain products, once introduced into the consumption realm, cannot be exclusive to any individual. It is impractical and uneconomic to exclude anyone from enjoying the benefits of such products. For instance, in environmental protection, once air and noise pollution are mitigated, the resulting fresh air and quiet environment are enjoyed by all and cannot be denied to any specific individual. This is an example of a product with non-excludability.
3. Non-divisibility: Pure public goods are inherently non-divisible. Their consumption is predicated on the collective enjoyment of many consumers without compromising their integrity. For example, the security provided by traffic police is non-divisible. Pure public goods, characterized by non-rivalry, non-excludability, and non-divisibility, exhibit properties of public consumption. That is, consumers can only share these goods, and no one can be excluded from enjoying them. The departments responsible for management and administration provide such goods. Pure public goods encompass not only material products but also various public services. Sometimes, public products are considered in conjunction with services, recognizing that the government's provision of services, including administrative and public-interest services, also constitutes the provision of public goods. This means that public products, in the broad sense, include both material and spiritual goods.
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