# What Is a Rival Good? Difference From Non-Rival Good, With Examples

![Cans Of Cola](https://www.investopedia.com/thmb/vP_eOkHYzRl4_kpJw2bIQ94k81w=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/cans-of-cola-109714536-f081a06a971d48368d173c819203c4db.jpg)

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> **Definition**
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> A rival good is a product that can only be consumed by one person, preventing another person from consuming it at the same time

## What Is a Rival Good?

A rival good is a product consumed by one person, which prevents it from being used by another. Most common household products and supermarket foods are rival goods. For instance, a bar of soap or a bottle of beer can only be consumed by a single person. Competition to obtain the good can create [demand](https://www.investopedia.com/terms/d/demand.asp) and drive up its price.

### Key Takeaways

*   A rival good is a product that may only be used by a single consumer.
*   Competition can increase the value of rival products for the individuals who seek them.
*   Limited availability and demand give businesses that supply rival goods leeway to set prices higher.
*   Common examples of rival goods include food, clothing, and cars.

## Understanding Rival Goods

A rival good can't be used by two people at the same time. The rivalry isn't between two products or companies (like say, Coke and Pepsi), but rather, between two individuals over a single can of soda. If someone drinks the soda, it is no longer available for anybody else to consume.

Because it can only be used by one person, competition to purchase it is created. [Consumers](https://www.investopedia.com/terms/c/consumer-spending.asp) become rivals in an attempt to obtain it. How much competition depends on availability. If there are many soda cans on supermarket shelves, it's easy to get another one, provided there are thousands of people who aren't eager to buy them at that moment.

If the product is rare, such as a limited edition designer t-shirt, consumers may engage in a [price war](https://www.investopedia.com/terms/p/price-war.asp) and be willing to pay more to get their hands on it. Competition for this type of rival good is also compounded by the availability of apparel in sizes that meet each consumer’s needs. Manufacturers may only produce limited quantities for certain sizes.

Rival goods can be durable (like food) and nondurable. Common examples of nondurable rival goods include clothing, electronic goods, cars, plane tickets, and houses. Some can be reused by another consumer at a later stage like a skateboard after the current owner is finished with it.

> **Fast Fact**
>
> The COVID-19 pandemic led to a shortage in toilet paper, driven by panic-buying and leading some businesses to increase prices for this consumer staple.

## Special Considerations

The competitive nature of rival goods can increase their value to the individuals who seek them. This is especially true for the [travel](https://www.investopedia.com/financial-edge/0212/5-ways-to-invest-in-travel-and-tourism.aspx), hospitality, and entertainment industries. Goods that are rival in consumption can include seats on an airplane or for a Broadway performance.

When demand is high for rival goods, businesses can exert more [pricing power](https://www.investopedia.com/terms/p/pricingpower.asp). Limited availability coupled with demand gives businesses pricing power.

Demand for rival goods drives retail sales during holiday periods as consumers race to buy gifts before they sell out or while certain [discounts](https://www.investopedia.com/terms/d/discount.asp) are available. This type of shopping behavior has been used to retailers’ advantage, particularly during [Black Friday](https://www.investopedia.com/terms/b/blackfriday.asp) sales events.  

> **Important**
>
> Procuring a rival good impacts its overall supply, potentially leading to price increases and a lack of availability.

## Rival Goods vs. Non-Rival Goods

Goods are either classified as rival or non-rival. A rival good is something that can only be possessed or consumed by a single user. A good that can be consumed or possessed by multiple users is said to be a non-rival good.

Internet sites and radio stations are examples of non-rival goods. This means that many people can access them at the same time and they can be consumed over and over again without impacting their quality or running the risk that [supply](https://www.investopedia.com/terms/s/supply.asp) will be depleted.

Another example of a non-rival good is a streaming service like [Netflix](https://www.investopedia.com/insights/how-netflix-makes-money/). Signing up gives you access to shows, movies, and other content. Although you've subscribed to the service, it doesn't interfere or prevent other consumers from accessing the same content offered by the company.

## Rival Goods vs. Non-Excludable Goods

Non-excludable goods are products that cannot exclude a certain individual or group from using them. A public road is a non-excludable good. Everyone has access to a public road, even if they are just walking on it rather than driving a vehicle.

The opposite of a non-excludable good is an excludable good, which is a good that some people are restricted from using. Excludable goods are private goods, while non-excludable goods are public goods. A rival good is a type of excludable good because it can only be possessed or consumed by a single user.

## What Are Club Goods, Public Goods, Private Goods, and Common Goods?

Economists define goods based on the level of excludability and potential rivalry to obtain them.

*   Club goods are excludable but non-rival. Cable television programming can be consumed by many users at the same time but it is excludable. Only paying subscribers have access to it.
*   Public goods like city parks are non-excludable and non-rival. Although access is not restricted, they can be consumed by multiple users.
*   Private goods are excludable and rival. Clothing is a private good because an item of clothing can only be used by a single user at one time.
*   Common goods are non-excludable and rival. Examples include coal and timber because they can only be possessed or consumed by a single user at one time but access to them is not restricted.

## What Is the Free Rider Problem?

The free-rider problem is a phenomenon of the free-market system. It occurs when some members of a community fail to contribute their fair share to the costs of a shared resource. The free-rider problem creates a burden on a shared resource as a result of its use or overuse.

## Why Can Markets Only Provide Private Goods Efficiently?

The [free-rider problem](https://www.investopedia.com/terms/f/free_rider_problem.asp) creates an opportunity for private goods. All non-excludable goods suffer from the free-rider problem. They become economically infeasible to produce, creating a market for private goods.

## The Bottom Line

Economists define products as rival or non-rival goods as a way to analyze patterns of consumption and the workings of the law of supply and demand.

A rival good is restricted in its availability, which can cause demand to outstrip supply and its price to increase. A non-rival good is relatively unaffected by demand as it can be consumed by many people at the same time.  

> **Article Sources**
>
> 1.  NC State University. "[How the Coronavirus Created a Toilet Paper Shortage](https://cnr.ncsu.edu/news/2020/05/coronavirus-toilet-paper-shortage/)."
>     
> 2.  PennState, College of Earth and Mineral Sciences. "[EBF 200 Introduction to Energy and Earth Sciences Economics: Public Goods and Common Pools](https://www.e-education.psu.edu/ebf200/node/194)."