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Chapter 5: Problem 3

What is the tragedy of the commons? How can it be avoided?

Short Answer

Expert verified
The tragedy of the commons refers to a situation where individuals, acting independently according to their self-interest, deplete a shared resource, causing a net negative for all. It can be avoided through privatization, regulation, community management, and education about the consequences of overexploitation.

Step by step solution

01

Understanding The Tragedy of The Commons

The 'Tragedy of the Commons' is a theory attributed to Garrett Hardin, and it illustrates a dilemma where individuals acting independently and rationally according to their self-interest behave contrary to the best interests of the whole by depleting some common resource. The classic example used to demonstrate this concept is a shared pasture (the 'commons') used by herders. Each herder will try to maximize their gain by adding more livestock to the pasture. In the short term, each herder benefits from this practice. However, when every herder adds more livestock, the pasture swiftly becomes overgrazed and can no longer sustain the animals, resulting in a net negative for all.
02

Identifying Solutions for The Tragedy of The Commons

1. Privatization is one solution as it splits the resource into parcels, providing each user with a motive to preserve their property. 2. Regulation can be another solution where rules or laws are put in place to limit the use of commons. 3. Another approach is through community management, where local communities regulate the use of commons thereby ensuring their sustainable use. 4. Educating people about the potential consequences of overexploitation can also be an effective tool.

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