Club goods(alsoartificially scarce goods) ornatural monopoly goods are a type ofgoodineconomics, sometimes classified as a subtype ofpublic goodsthat areexcludablebutnon-rivalrous, at least until reaching a point wherecongestionoccurs.

A club good is a good that is virtually unlimited in terms of the quantity available but those who do not belong the club that provides the good can be excluded from using the good. In relation to other types of goods, it is excludable (people can be prevented from using it) but non-rivalrous (when one person uses the good it does not diminish the quantity available to other members).

Often these goods exhibit high excludability, but at the same time low rivalry in consumption. Thus, club goods have essentially zero marginal costs and are generally provided by what is commonly known as natural monopolies. Furthermore, Club goods haveartificial scarcity. Club theory is the area of economics that studies these goods.

Club Goods are expansive and Non-Rival yet the public may be excluded from use (Excludable)

Examplesofclub goodsinclude, cinemas, cable television, access to copyrighted works, and the services provided by social or religiousclubsto their members

Digital downloads are an example is an example of a club good, consumers can be excluded from purchasing a digital download until they pay for it but when one consumer purchases a download, it does not decrease the amount available.

Digital TV is another example, consumers pay a subscription fee giving them access to the club and they receive the TV shows which can be sent to an infinite amount of subscribers.

Discussion Question:

1. How do Club Gooddiffer from Public Goods?
2. How do Entrepreneurs profit from Club Goods?
3. Why does government need to regulate Club Goods?