The problem of overfishing in waters that are commonly owned can be solved by

Question

Quizplus · Accepted Answer

By establishing property rights for fishing in the waters, fishermen will have an incentive to conserve fish stocks and only harvest what they need. This will lead to sustainable use of the resource and prevent overfishing. The other options do not address the root cause of overfishing and may even exacerbate the problem. The Coase Theorem and market rationing rely on externalities to correct themselves, but overfishing is not an externality, it is a tragedy of the commons. Subsidizing fishing would encourage more fishing and exacerbate overfishing.

The Problem of Overfishing in Waters That Are Commonly Owned