This concept is crucial in the field of economics as it helps categorize goods into different types based on whether their use is restricted to paying customers or open to everyone. Excludable goods are those that can be easily restricted to consumers who pay for them, while non-excludable goods are available to anyone, regardless of payment.

Excludability refers to the degree to which consumption of a good or service is limited to paying customers. For example, broadcast television exhibits low excludability or is non-excludable because people can access it without paying a fee.