The 'tragedy of the commons' refers to the phenomenon where
A)individuals are free riders.
B)people overuse a common resource.
C)people do not internalise an externality.
D)there is rivalry in consumption.

Question

Quizplus · Accepted Answer

The tragedy of the commons refers to the situation where individuals overuse or exploit a common resource, such as a pasture, water body or fishing ground, leading to depletion or degradation of the resource. This happens when no individual has ownership or control over the resource, and each person acts in their own self-interest without considering the impact of their actions on others. As a result, the resource is depleted faster than it can regenerate, leading to negative consequences for everyone who uses it.

The 'Tragedy of the Commons' Refers to the Phenomenon Where