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basic example of PotC, cateogry
The '''problem of the commons''' refers to how a publicly available resource becomes run-down because no one has an incentive to maintain or improve it. An example of this problem is a public park that becomes unsafe.
The '''problem of the commons''' (also called the '''tragedy of the commons''') refers to how a publicly available resource can become run-down because no one has an incentive to maintain or improve it.
For example, imagine a large pasture where any farmer is allowed to graze his cattle. If a farmer wants to produce more milk, he must weigh the benefit of adding a new cow (more milk) to the cost (consuming more grass). For the individual farmer, the benefits of adding a cow, which he shares only with himself, far outweigh the costs, which are shared amongst all the farmers. If every farmer makes the same self-interested decision, eventually there will be too many cows for the pasture, and it will be destroyed. All of the farmers will then be without a place to graze their cattle, and all are worse off for their decision.
[[Category:Economics]]
[[Category:Political doctrines]]
[[Category:Political doctrines]]