Tragedy of the Commons

Think of a town that has only one lake. In the lake, there are only a hundred fish and two fishermen. The two fishermen catch some fish and allow other fish to reproduce; that way, the number of fish grows in the lake. However, after some time, other people begin fishing too. The town is running out of fish. Everyone's trying to catch as many fish as possible before no fish are left. After some time, there are no fish left in the lake. This is the Tragedy of the Commons.

What would you do if you were in a real-life situation and everyone was going to catch as many fish as they could? Would you join or consider the impact it has on the entire town? Why do you think everyone would go and catch as many fish as possible? Why does the Tragedy of the Commons happen when it can be prevented?

Why don't you read on to better understand the Tragedy of the Commons?

The Tragedy of the Commons Definition

To understand the definition of the Tragedy of the Commons, let's consider a town where all individuals engage in sheep farming. One peculiar thing about this town is that the land of this town is shared by everyone who lives there. That is to say that there is no land ownership in this town.

Fig 1. - Town of the commons

Figure 1 represents some of the houses from the imaginary town of the commons. To support themselves, households in this town keep sheep and trade them with other goods and services with people from other towns. Everyone also uses the land which everyone owns to feed their sheep.

Initially, everyone is satisfied with having the land shared as it is enough to feed everyone's sheep, and everyone can use it to make a living. However, the town's population expands significantly over time, increasing the number of sheep owned by households. As there are more sheep and a fixed amount of land to feed them, the land loses its potential to regenerate.

Everyone in the town rushes to feed their sheep. There's no incentive to collaborate and agree to consume the land sustainably so the land can regenerate. That's because everyone maximizes their earnings by having their sheep consume as much land as possible before someone else's sheep consume it.

At some point, the land gets barren from overgrazing, which becomes a tragedy for the town as everyone loses their main source of income.

The Tragedy of the Commons can be prevented. Different solutions can be taken. The government can step in and regulate natural resources. Additionally, individuals can come to an agreement on the division as well as the consumption of resources.

The Tragedy of the Commons Summary

Let's consider the Tragedy of the Commons summary.

The Tragedy of the commons refers to a scenario in which people who have access to public resources (common resources) behave in their self-interest, eventually leading to the depletion of the resource.

The Tragedy of the Commons explains why people are predisposed to judge based on their interests, although these choices may have unfavorable repercussions for others.

When a person believes that other people won't behave in the group's best interest, it may sometimes lead them to excuse conduct that is more selfish than it should be. This is a reason why many common resources ultimately result in a Tragedy of the Commons.

The potential overuse of a common-pool resource, which is a hybrid between a public good and a private good, can also influence individuals to act with their short-term interests in mind. This can result in using an unsustainable good and disregarding the potential damage it could cause to the environment or the general public.

It is important to note that not all resources or goods are prone to the Tragedy of the Commons. The resource or the good that is consumed should be scarce, meaning that after some point, no one will be able to consume this resource.

Additionally, the resource should be non-excludable. That means that no one is capable of excluding others from consuming or accessing this resource.

The idea of the Tragedy of the Commons was first brought to light by prominent British author William Forster Lloyd in 1833. Garret Hardin coined the term "Tragedy of the Commons" in 1968.

• To sum up, the main idea behind the Tragedy of the Commons is that common resources will deplete as a result of each and every individual acting in their self-interest rather than considering the impacts on society.
• All individuals participating in the consumption of the resource aim to consume as much of the resource as possible before other individuals manage to deplete the resource further.

In a Tragedy of the Commons setting, there is no incentive for any participant to invest in maintaining and ensuring that the resource reproduces. That's because even if one aims to consume the resources sustainably, others will continue to deplete them.

The Tragedy of the Commons Examples

There are many examples of the Tragedy of the Commons in the real world. Unfortunately, individuals and businesses act in their best interest without considering their actions' impact on shared resources.

The Tragedy of the Commons Causes

One of the leading causes of the Tragedy of the Commons is individuals or companies acting in their own self-interest and expecting others to behave in the same manner.

This race between fishermen and other individuals causes the fish stock to deplete as there isn't enough time for the fish to regenerate.

Another cause of the Tragedy of the Commons is the unregulated use of commonly held resources. If the government does not regulate and clearly define how the consumption of common resources should take place, it will lead to resources experiencing the Tragedy of Commons.

Solutions to Tragedy of the Commons

Fortunately, there are many solutions to the Tragedy of the Commons, the main ones including legislative solutions and collective solutions. Figure 2 shows two main solutions to the Tragedy of the Commons.

Solutions to Tragedy of the Commons: Legislative Solutions

One solution is a set of laws that prevents the Tragedy of the Commons. Rules and regulations, such as environmental legislation, ensure that shared resources are not depleted.

Governments may tackle the overconsumption of shared resources by legally banning some companies from consuming them or by regulating consumption and usage.

The government should allocate a specific budget that contributes towards the conservation and regeneration of the resource. This can help prevent the resource from being depleted.

Solutions to Tragedy of the Commons: Collective Solutions

As the name suggests, collective solutions refer to the collective agreement that prevents the depletion of commonly shared resources.

The arrangements made by collective solutions often include dividing resources and allowing only certain parties to have access to them. The parties that have access to the resource are often the ones who are part of the arrangements made by the collective solution. The agreement clearly divides the use of resources in a way that is efficient and slows down the depletion of the resource.