In economics, a privileged group is one possible condition for the production of public goods.
A privileged group contains at least one individual that benefits more from a public good than its production costs. Therefore, the good will be produced although other members of the group benefit without paying. However, this free rider problem may still result in an undersupply of the good compared to the Lindahl equilibrium.
Famous quotes containing the words privileged and/or group:
“Democracy means the organization of society for the benefit and at the expense of everybody indiscriminately and not for the benefit of a privileged class.”
—George Bernard Shaw (1856–1950)
“Remember that the peer group is important to young adolescents, and there’s nothing wrong with that. Parents are often just as important, however. Don’t give up on the idea that you can make a difference.”
—The Lions Clubs International and the Quest Nation. The Surprising Years, I, ch.5 (1985)