When no one owns a particular resource

Question

Quizplus · Accepted Answer

When no one owns a resource, there are no property rights defined and individuals may not have legal recourse to address damages caused to the resource. Additionally, since no one has ownership or responsibility over the resource, there is no incentive for anyone to consider the externalities associated with it. This can lead to negative externalities, such as pollution or depletion of the resource. Positive externalities generally arise when there is some ownership or use of the resource, as individuals may benefit from positive spillover effects.

When No One Owns a Particular Resource