The services provided by wireless networks are more difficult to classify than a

Question

The services provided by wireless networks are more difficult to classify than apples and national defense. The type of good that characterizes a wireless network depends on the circumstances in which the network is used. Are there a lot of piggyback users? Is the network secure?

Use the table to help you classify the wireless networks in each of the different scenarios below.

Rival Non-rival

Excludable: Private good(Rival) Natural monopoly(Non-rival)

Non-excludable: Common resource(Rival) Public good(Non-rival)

4.5. Having solved his piggybacking problems by protecting his network, Srihari comes up with an idea to get a bit of cash towards his monthly Internet service bill. He begins collecting a fee from a few of his neighbors in exchange for his network password.

Between Srihari and a handful of paying neighbors who access his network, there is plenty of bandwidth to ensure a quick Internet connection speed. Srihari's protected wireless network now most closely resembles a:

A. Private good

B. Public good

C. Common resource

D. Natural monopoly

Explanation / Answer

C. Common resource

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