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)
“[The Republicans] offer ... a detailed agenda for national renewal.... [On] reducing illegitimacy ... the state will use ... funds for programs to reduce out-of-wedlock pregnancies, to promote adoption, to establish and operate children’s group homes, to establish and operate residential group homes for unwed mothers, or for any purpose the state deems appropriate. None of the taxpayer funds may be used for abortion services or abortion counseling.”
—Newt Gingrich (b. 1943)