A related concept is that of the threshold good. (Perhaps someone with more economics schooling can help out with the formally correct term.) It’s something that is useless until a certain threshold amount is obtained.
An example is the length of a bridge. A bridge that goes 90% of the way across a ravine is not twice as good as one that goes 45% across. Both are equally useless (for most purposes). Another example would be the stones in an arch—the final stone, or capstone, is a sine qua non.
The existence of threshold goods is what motivates the concept of assurance contracts, according to which people pledge money iff enough other people pledge enough money to get a project done.
A related concept is that of the threshold good. (Perhaps someone with more economics schooling can help out with the formally correct term.) It’s something that is useless until a certain threshold amount is obtained.
An example is the length of a bridge. A bridge that goes 90% of the way across a ravine is not twice as good as one that goes 45% across. Both are equally useless (for most purposes). Another example would be the stones in an arch—the final stone, or capstone, is a sine qua non.
The existence of threshold goods is what motivates the concept of assurance contracts, according to which people pledge money iff enough other people pledge enough money to get a project done.