What is the difference between rival and common resource goods?

Rival good refers to a type of good that cannot be consumed or possessed by more than one person at the same time. Rival goods can either be durable or non-durable. Some commodities, for example, a bottle of wine or a designer t-shirt are rival goods, meaning, if someone buys the t-shirt or drinks the wine, the product is no longer available for another consumer. Rival goods create competition because they can only be used or owned by one person. For instance, competition occurs when several peoples are bidding to buy a specific house or a business establishment.

Common resource goods are non-excludable and rival goods and services. Non-excludable are those that the supplier cannot prevent their consumption by those that haven't paid for them. For example, the fire safety department is responsible for putting out the fire before it spreads to the whole city, not just to those who honour their contributions to the Firemen's Benevolent Association.

A significant concern with common resource goods is inadequate social-management systems in place to protect the natural resources. Lack of these systems may result in over-consumption, under-investment, or ultimate depletion of the resources in place.