Question

An online video game has the technical capability for a large number of players to participate, as long as the game administrator works to ensure the constant functionality of the game. Adding more players deprives no other participants of the entertainment services provided by the online game. It has been easy, however, to set up a system for excluding participation by anyone who fails to contribute $5 per month to a fund that ensures covering extra expenses generated by that player's participation. Is this game a public good?

Short answer

The video game is not a public good because it does not consider all the characteristics of a public good.

Step-by-step solution

Step 1. Definition of Public Good.

A good is defined as public good if it is owned by the government and can be used by the public free of cost and without any additional charge.

Step 2. Is the video game a public good?

The characteristics of public goods are non-rival and non-excludable. The video game does not satisfy all the characteristics of public goods. The game is non-rival as the addition of more players does not deprive the game for others. The game is excludable as the participant has to pay $5per month for extra expenses generated.