Private market failure to optimally allocate common resources is a problem that has only become evident in the last few centuries.

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Private market failure to optimally allocate common resources has been a problem throughout human history, not just in the last few centuries. Examples include overfishing and deforestation by private individuals or companies without considering the long-term consequences for the resource. The concept of the tragedy of the commons, first proposed by William Forster Lloyd in the 1830s, also highlights this issue.

Private Market Failure to Optimally Allocate Common Resources Is a Problem