Public goods theory purports to show why goods with the rigorously defined characteristics of publicness cannot be produced efficiently by the private sector of the economy, creating a market failure which implies a role for government in the production of those goods for which the market fails.
Public good, in economics, a product or service that is non-excludable and nondepletable. A good is non-excludable if one cannot exclude individuals from enjoying its benefits when the good is provided.
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