Collective goods, also known as public goods, are resources that can be consumed simultaneously by a large number of consumers without diminishing their availability to others. Typical examples include streets and roads, police and fire protection, and national defense. Unlike market goods, collective goods cannot be efficiently priced or quantified based on market dynamics, hence they are generally provided by the government.
Market goods are goods that are typically provided and priced by market participants in a competitive marketplace, as contrasted with collective goods, which are typically provided by the government. They are characterized by rivalry in consumption and excludability.
