5.1 The Tragedy of the Commons

• What is the Tragedy of the Commons as an economic theory?

  Overexploitation of shared resources
• In the Tragedy of the Commons, negative consequences are spread across all users
• Garrett Hardin popularized the Tragedy of the Commons in his 1968 essay in "Science."
• According to Hardin, what is necessary to prevent the Tragedy of the Commons?

  Private ownership or regulation
• In the Tragedy of the Commons, shared resources are available to all individuals
• Match the example of the Tragedy of the Commons with its consequence:

  Overgrazing ↔️ Soil erosion

  Overfishing ↔️ Depleted fish stocks

  Water pollution ↔️ Harm to aquatic life
• The Tragedy of the Commons assumes that individuals prioritize collective well-being over personal gain.

  False
• What is the role of open access in the Tragedy of the Commons?

  Unrestricted resource use
• The Tragedy of the Commons assumes that resources are finite and can be depleted
• Garrett Hardin argued that balancing self-interest with collective well-being is essential to prevent resource depletion.
• Order the following examples of the Tragedy of the Commons from land-related to water-related:

  1️⃣ Overgrazing

  2️⃣ Overfishing

  3️⃣ Water Pollution
• Match the principle or assumption of the Tragedy of the Commons with its description:

  Open Access ↔️ Free access to the resource

  Limited Resources ↔️ Finite availability of the resource

  Lack of Coordination ↔️ No governance to manage use
• What does the principle of individual self-interest versus collective benefit describe?

  Prioritizing personal gain
• The Tragedy of the Commons assumes that there is no governance or regulation to manage resource usage
• The finite nature of resources is a key assumption of the Tragedy of the Commons.
• What is the role of the absence of regulation in the Tragedy of the Commons?

  Uncontrolled resource allocation
• The Tragedy of the Commons assumes that individuals prioritize personal gain over collective welfare
• The lack of governance or regulation contributes to the Tragedy of the Commons
• Rational behavior, where individuals maximize self-interest, is a central principle of the Tragedy of the Commons.
• The principle of limited resources highlights that resources can be depleted
• Match the principle with its description:

  Individual Self-Interest vs. Collective Benefit ↔️ Prioritizing personal gain over community welfare

  Open Access ↔️ Free access to the resource without restrictions

  Lack of Coordination ↔️ No governance or regulation to manage resource usage

  Rational Behavior ↔️ Individuals make decisions that maximize self-interest
• What are common examples of the Tragedy of the Commons mentioned in the study material?

  Overgrazing and overfishing
• Resource depletion in the Tragedy of the Commons leads to scarcity
• Environmental degradation, such as water pollution, is a consequence of the Tragedy of the Commons.
• What type of social conflict can arise from competition for shared resources in the Tragedy of the Commons?

  Disputes between farmers
• Government regulation enforces standards and limits resource usage
• What is a disadvantage of privatization as a solution to the Tragedy of the Commons?

  Unequal access and exclusion
• Community-based management promotes social cohesion and accountability in resource use.
• Steps leading to the Tragedy of the Commons in a shared resource

  1️⃣ Individuals share a common resource

  2️⃣ Each person maximizes personal benefit

  3️⃣ Long-term impact on the resource is ignored

  4️⃣ Resource depletion or degradation occurs
• Who popularized the Tragedy of the Commons in 1968?

  Garrett Hardin
• Hardin used the example of a common pasture in his essay.
• Overfishing is an example of the Tragedy of the Commons that disrupts marine ecosystems.
• What is the Tragedy of the Commons driven by, according to the underlying principles and assumptions?

  Overexploitation of shared resources
• The principle of prioritizing personal gain over community welfare is known as individual self-interest versus collective benefit
• Open access to a resource without restrictions is a key principle of the Tragedy of the Commons.
• Why are limited resources a critical factor in the Tragedy of the Commons?

  They can be depleted
• The Tragedy of the Commons leads to unsustainable practices and resource degradation
• What is one example of resource depletion resulting from the Tragedy of the Commons?

  Overfishing decimates fish stocks
• Environmental degradation is a direct consequence of the Tragedy of the Commons.
• Social conflicts can arise in the Tragedy of the Commons due to competition for resources