Over-fishing of common fishing grounds happens because fishing grounds are a common property and social and private incentive are the same.

Question

Quizplus · Accepted Answer

It is the fact that social and private incentives diverge that creates the problem.The profit-maximizing quantity of fish for the fishermen exceeds the social optimal quantity of fish that will maintain the stock.Over-fishing (and maybe extinction)will result.

Over-Fishing of Common Fishing Grounds Happens Because Fishing Grounds Are