Overview

congestion


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A situation when too many consumers are trying to use the same impure public good simultaneously, and, as a result, the benefit to each user of this public good is reduced. Examples of impure public goods that may suffer from congestion are parks and roads. Congestion is a negative externality: while drivers on crowded roads, for example, are themselves inconvenienced, a cost they bear themselves, they also cause delay, higher fuel costs, and a greater chance of accidents to other road users.

Subjects: Earth Sciences and Geography — Economics.


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