Editing Free good

{{Short description|Concept in economics}}

In economics, a '''free good''' is a good that is not [[scarcity|scarce]], and therefore is available without limit.<ref name="e266">{{cite book | last=Steedman | first=Ian | title=General Equilibrium | chapter=Free Goods | publisher=Palgrave Macmillan UK | publication-place=London | date=1989 | isbn=978-0-333-49525-4 | doi=10.1007/978-1-349-19802-3_17 | page=158–161}}</ref><ref>''[[Economics (textbook)|Economics: An Introductory Analysis]]'' (1948) McGraw&ndash;Hill; [[Paul Samuelson]] with [[William Nordhaus|William D. Nordhaus]] (since 1985), McGraw&ndash;Hill (18th ed., 2004)</ref><ref>{{Cite web |url=http://www.businessdictionary.com/definition/free-good.html |title=What is free good? Definition and meaning - BusinessDictionary.com |access-date=2010-02-03 |archive-date=2017-11-16 |archive-url=https://web.archive.org/web/20171116153222/http://www.businessdictionary.com/definition/free-good.html |url-status=dead }}</ref> A free good is available in as great a quantity as desired with zero [[opportunity cost]] to [[society]].

A good that is made available at zero price is not necessarily a free good.  For example, a shop might give away its stock in its promotion, but producing these goods would still have required the use of scarce resources.

Examples of free goods are ideas and works that are reproducible at zero cost, or almost zero cost. For example, if someone [[invention|invents]] a new device, many people could copy this invention, with no danger of this "resource" running out. 

Earlier [[schools of economic thought]] stated that resources that are enough for everyone to have as much as they want are free goods. Examples in textbooks included seawater and [[air]].

[[Intellectual property]] laws such as [[copyright]]s and [[patent]]s have the effect of converting some [[intangible good]]s to scarce goods. Even though these works are free goods by definition and can be reproduced at minimal cost, the production of these works does require scarce resources, such as [[skilled labour]].  Thus these laws are used to give exclusive rights to the creators, in order to encourage resources to be appropriately allocated to these activities.

Futurists like [[Jeremy Rifkin]] theorize that advanced [[nanotechnology]] with the ability to turn any kind of material automatically into any other combination of equal mass will make all goods essentially free goods, since all raw materials and manufacturing time will become perfectly interchangeable.<ref name="l120">{{cite journal | last=Aguilar-Millan | first=Stephen | last2=Feeney | first2=Ann | last3=Oberg | first3=Amy | last4=Rudd | first4=Elizabeth | title=(PDF) The Post-Scarcity World of 2050-2075 | journal=The Futurist | volume=44 | issue=1 | date=2010-01-01 | issn=0016-3317 | url=https://www.researchgate.net/publication/216807965_The_Post-Scarcity_World_of_2050-2075 | access-date=2024-12-18 | quote=[Technologists who argue in support of the idea that goods will become free] argue that digitization (along with other technological advancements, such as nanotechnology, molecular manufacturing, robotics, and artificial intelligence) will continue to increase efficiencies in resourcing, production, transportation, and overall operations that will drive away costs in the future.}}</ref><ref name="j530">{{cite journal | last=Lemley | first=Mark A. | title=IP in a World Without Scarcity | journal=New York University Law Review | volume=90 | number=2 | year=2015 | url=https://www.nyulawreview.org/wp-content/uploads/2018/08/NYULawReview-90-2-Lemley.pdf | quote=Combine these four developments—the Internet, 3D printing, robotics, and synthetic biology—and it is entirely plausible to envision a not-too-distant world in which most things that people want can be downloaded and created on site for very little money—essentially the cost of raw materials. Jeremy Rifkin calls this the "zero marginal cost society."}}</ref>

==See also==
*[[Open source]]
*[[Open data]]
*[[Artificial scarcity]]

==References==
<references/>

{{Goodtypes}}

{{DEFAULTSORT:Free Good}}
[[Category:Goods (economics)]]