Q B.4.4.4 Discussion - Tragedy of the Commons- Common Resources - Group B 2 From ECON-102-OMH-CRN55774 What is Tragedy Of The Commons?Links to an external site. The tragedy of the commons is an economics problem in which every individual has an incentive to consume a resource, but at the expense of every other individual -- with no way to exclude anyone from consuming. Initially it was formulated by asking what would happen if every shepherd, acting in their own self-interest, allowed their flock to graze on the common field. If everybody does act in their apparent own best interest, it results in harmful over-consumption (all the grass is eaten, to the detriment of everyone) The problem can also result in under investment (since who is going to pay to plant new seed?), and ultimately total depletion Links to an external site. of the resource. As the demand for the resource overwhelms the supply, every individual who consumes an additional unit directly harms others -- and themselves too -- who can no longer enjoy the benefits. Generally, the resource of interest is easily available to all individuals without barriers (i.e. the "commons Links to an external site."). Review the two videos below on the Tragedy of the Commons, the story of Common Resources. Common Resources are both Rival and Non-Excludable which means that the use by one individual imposes an negative externality upon everyone else. Without an intervention by a government, these items will be destroyed by over use. Where do we see Common Resource problems in everyday life? • Traffic on the Freeway • Pollution in the Environment • Fish in the Ocean Rival-Non Excludable Negative Externality due to over consumption Post- Define a Common Resource Problem in society and/or the world. Why is this a Common Resource Problem? Offer a Coase, Tax, or Regulation solution to your problem. Explain how your solution will limit the negative externality of the problem. (Remember- Common Resource Externalities are generated by over consumption) Discussion Question Requirements: Each student is required to post a 150 word response to the question. The student then must post at least a 50 word response to at lease ONE other student post. Post-=4 points. Comment = 2 Points Submit Original Post by the Due Date. Comments are open for four (4) days after the Due Date or until the Available Until Date How to Participate and Answer Discussion Questions