| Private goods | Public goods |
| 1. Goods that can be possessed and owned by a private individual are called Private goods. | 1. Goods that can be used by many individuals at the same time are called Public goods. |
| 2. These goods possess the characteristics of excludability and competitiveness. | 2. These goods possess the characteristics of joint demand and collective consumption. |
| 3. In order to obtain ownership of such excludable goods, individuals need to compete. | 3. These goods are either provided by the government for all or some people pay for it together. Hence, all have equal ownership and so individuals do not need to compete to own them. |
| 4. Example: A motorcycle, mobile phone, house owned by an individual. | 4. Example: Public garden, village well, street lights, etc. |
