The 'Tragedy of the Commons'
This is the name of a parable which describes the situation in which many people, each following their own private incentives, deplete a resource which is for the use of all.
This problem is associated with Common Resources.
This problem is associated with Common Resources.
Modern Examples
Contemporary society has a number of current examples of the Tragedy of the Commons:
1. the depletion of fish stocks in international waters
2. congestion on urban highways
3. the rise of resistant diseases due to over-use
of antibiotics.
1. the depletion of fish stocks in international waters
2. congestion on urban highways
3. the rise of resistant diseases due to over-use
of antibiotics.
How do you solve this problem?
This problem can be dealt with in a number of ways. Two solutions include:
1. The government or local council could allocate a certain amount of the good to each person and they can be concerned with looking after their own allotment.
This is essentially making it a private good.
Example: Enclosure movement in England in 17th century.
2. The government or local council could regulate the amount of the resource that one individual may use or tax for the use of the resource. Example: Quota on number of fish allowed to be caught or toll roads.
1. The government or local council could allocate a certain amount of the good to each person and they can be concerned with looking after their own allotment.
This is essentially making it a private good.
Example: Enclosure movement in England in 17th century.
2. The government or local council could regulate the amount of the resource that one individual may use or tax for the use of the resource. Example: Quota on number of fish allowed to be caught or toll roads.