Semi-private goods and services yield identifiable benefits to the one who consumes them,but their consumption by one person yields spillover benefits to other persons.

Question

Quizplus · Accepted Answer

Semi-private goods and services have some characteristics of both private goods (where consumption benefits are exclusive to the consumer) and public goods (where consumption benefits are enjoyed by everyone). While the person who consumes a semi-private good or service will receive identifiable benefits, there may also be spillover benefits enjoyed by others. An example of a semi-private good might be a Wi-Fi hotspot - the person who pays for access receives the primary benefit, but others nearby may also be able to access the network and benefit indirectly.

Semi-Private Goods and Services Yield Identifiable Benefits to the One