A characteristic of a good or service, this term describes the ability to prevent individuals who have not paid for it from accessing or consuming it. In other words, if a provider can effectively stop non-payers from receiving the benefits, the good or service possesses this quality. A movie ticket is an illustration; individuals who do not purchase a ticket are denied entry to the theater and therefore cannot watch the film.
The presence of this attribute is crucial for the functioning of markets. It allows providers to charge a price for their offerings and to generate revenue, which in turn incentivizes production and innovation. Without it, the incentive to supply the good or service diminishes, potentially leading to under-provisioning or non-provisioning altogether. Historically, goods and services with this feature have been more readily provided by private entities, as the ability to recoup costs through payment is essential for their financial viability.
