Public goods refers to a good which must be available in the equal amount to all the influenced consumers. For a good to become public good, it must have two characteristics namely, non–rival and non–excludable. Non–rival means that consumption by one individual does not reduce its amount available to others where as Non–excludable means that no influenced consumer can be deprived of consumption of a public good.
Although government grants many public goods such as parks, street lights etc., but there could be many examples of public goods such as an air conditioner being shared among a few roommates.
Public goods are basically a type of consumption externality; when an individual is concerned for another individual’s consumption.
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