The tragedy of the commons is:
A)the undersupply of a public good due to people not wanting to pay for a publicly common good.
B)the disappearance of certain markets due to the lack of willingness to pay by individuals,leading to collective misfortune.
C)the depletion of a common resource due to individually rational but collectively inefficient overconsumption.
D)None of these statements is correct.

Question

Quizplus · Accepted Answer

The tragedy of the commons refers to the depletion of a common resource due to individually rational but collectively inefficient overconsumption. This happens because no one individual has an incentive to conserve the resource, as they do not fully bear the costs of their overuse. This leads to a tragedy for all users who rely on the resource, as it eventually becomes depleted. Option A is incorrect because it refers to undersupply of a public good, which is a different concept. Option B is incorrect because it refers to the disappearance of markets, which is not necessarily related to the tragedy of the commons. Option D is incorrect because there is a correct statement among the options.

The Tragedy of the Commons Is