Tragedy of the Commons - Resources
- a term introduced by Garrett Hardin that refers to users of a commons ( a common pool, for example a pasture) where in his original analysis the process inevitably leads to the destruction of the resource (for example, overgrazing of the pasture) on which users depends.
Garrett Hardin video
Common-access resources (common pool resources) share two characteristics
- It is difficult to exclude individuals from deriving benefits from the good or the resource.
- There is rivalry in the consumption of common-access resources (one individuals consumption subtracts from the benefits available to others using the resource).
The effects of the Tragedy of the Commons behavior may be illustrated using a negative externality diagram. Where MSC > MPC.
Tragedy of the Commons, examples
Tragedy of the Commons and the Pilgrims
Tragedy of the Commons, examples
Solutions to Tragedy of the Commons
Private property rights - Government Taxes - Regulation
Negative Externalities and the Coase Theorem - Video
Learn Liberty - Tragedy of the Commons - reading
Reffonomics - The Lighthouse Story - slide show
Coase Theorem - "The Problem of Social Cost" (1960), which suggests that well-defined property rights could overcome the problems of externalities.
Learn Liberty - Tragedy of the Commons - reading
Reffonomics - The Lighthouse Story - slide show
Coase Theorem - "The Problem of Social Cost" (1960), which suggests that well-defined property rights could overcome the problems of externalities.
- Bees and Barbed Wire, example - reading
Of the four released AP exams and the last ten years of FRQ's I have found no questions on Tragedy of the Commons. If anyone knows anything different, please drop me a line. wcwaugh@aol.com.
Asymmetric Information
When either the buyer or the seller possess incomplete or inaccurate information.
Asymmetric Information leads to the following:
- Adverse Selection - often one party knows more about a good than another, often, the seller knows more about the good being sold than the buyer.
Implications of costly information - Morgan Rose
Adverse Selection - Reading at amos web - nice examples
- Moral Hazard - people will take risks, when others will assume the consequences of those actions.
video - by Texas Enterprise
Video, Fraser institute 2011 student contest
Again, no questions found but I would suspect some questions pertaining to concept, about Asymmetric Information.
Again, no questions found but I would suspect some questions pertaining to concept, about Asymmetric Information.
