Is a smartphone app(Non premium or subscribed service like Netflix) a public good? A smartphone app that provides users with information on surf conditions at their location. (“Surf conditions” refers to information on wind, waves, and ocean tides that is useful for surfers).
For this I assume the consumption here is strictly the info on the app also assuming the app is free anybody can use it (like google maps). This is a pure public good then. First. they are non-rival in consumption that is my consumption of the app does not in any way affect other people to use the app as well. Even if a million people is using the app, no one will be affected since the consumption here is only the info. It can be opened simultaneously by many user, and adding more users does not affect any of the users on using the app. Second, they are non-excludable, even if I want to deny someone else to use the app there is no way I can do so. Anybody can download the app and it will be really difficult to ban people from downloading the app
That is my answer.
My professor said the app is excludable. Am I correct to say that the app is non-exlucludeable? My logic behind it was a free app is always non-excludeable since there is always a workaround to accessing/downloading the app. For example a certain app that is not available for a specific region, you can always use a VPN to access/download it. If it is a premium service on the other hand, I completely agree that the it is excludable, however the professor has confirmed that the reasoning behind it being excludable doesn't have anything to do with it being a premium service.
Here is the professor's answer
It is, however, excludable because the app provider can limit you from downloading it to your phone.
1)This example is similar to the Netflix option, where Netflix can deny users access to the streaming service.
2)The definition for excludability it “it is possible to deny someone the opportunity to consume it.” It is possible to deny someone the opportunity to consume the app (no matter what they do, like owning the right smartphone) because it is possible for the app designer to restrict your ability to download the app. As for paying for it, that is a resultof the app being excludable. If it were a public good, the app design could not get people to pay for it.
Am I correct to say that the app is non-excludable?
I am sorry to say but this is wrong. Just assume google removes the application from the store. All android users would be excluded. There are many ways to exclude people from consuming an application. Access can be bound to a minimum age requirement, to a certain country (geo-blocking) or simply to a payment.
The possibility is important not the concrete situation.
Just because it is free now does not imply it is generally non-excludable.
Let’s ask the same question for a classic public good: Could you easily exclude someone from consuming air? Even if you wanted to this would be (nearly) impossible.