Published Oct 26, 2023 The tragedy of the commons is a concept in economics that describes a situation where individuals, acting in their self-interest, deplete or degrade a shared resource, ultimately leading to its destruction. The term “commons” refers to resources that are owned collectively or have open access, such as public land, shared fisheries, or the atmosphere. To illustrate the tragedy of the commons, let’s consider a hypothetical scenario of a fishery. Suppose there is a coastal community where multiple fishermen rely on a common area of the ocean to catch fish. Initially, the fishery is well-balanced, and the fishermen can sustainably harvest fish without depleting the population. However, as the number of fishermen increases, each individual has an incentive to catch as many fish as possible to maximize their own profits. Due to unrestricted access and lack of regulation, the fishermen engage in overfishing, depleting the fish population beyond its sustainable level. As a result, the fishery collapses, and none of the fishermen can benefit from it anymore. The tragedy of the commons highlights the challenges associated with managing shared resources. When individuals only consider their own self-interest, they may inadvertently harm the common good. This concept has implications for environmental conservation, natural resource management, and the need for collective action to prevent the depletion or degradation of valuable resources. Recognizing the tragedy of the commons allows policymakers and stakeholders to develop strategies to address these challenges. This can include implementing regulations, establishing property rights, or creating incentives to encourage sustainable practices. By doing so, societies can strive to avoid the tragedy and ensure the responsible and equitable use of shared resources for the benefit of all.Definition of Tragedy of the Commons
Example
Why Tragedy of the Commons Matters
Economics