Wednesday, October 6, 2010

Public Good needs to be considered in our decisions?

In economics, the marginal utility of a good or service is the utility gained (or lost) from an increase (or decrease) in the consumption of that good or service. Economists sometimes speak of a law of diminishing marginal utility, meaning that there are diminishing returns in consumption, so that the first unit of consumption of a good or service yields more utility than the second and subsequent units.

http://en.wikipedia.org/wiki/Marginal_utility


In economics, a public good is a good that is non-rivalrous and non-excludable. Non-rivalry means that consumption of the good by one individual does not reduce availability of the good for consumption by others; and non-excludability that no one can be effectively excluded from using the good.[1] In the real world, there may be no such thing as an absolutely non-rivaled and non-excludable good; but economists think that some goods approximate the concept closely enough for the analysis to be economically useful.

http://en.wikipedia.org/wiki/Public_good


We believe that this new lens to view transactions especially when foundation, nonprofit and  public funds or personal resources are being used.
When coming up with our the concept of a 4wins this ability to discribe the choice of using our offering verses a purely for profit companies goods just seem to make sense.  Do this and the pubic gets a higher value is a very strong reason to make that choice. 

When the public looks the curtain and ask what is the public good for this this become an even more powerful tool then just looking at the Marginal Utility of Money