Principles of Economics: Microeconomics - The Tragedy of the Commons

How common resources, like fisheries and forests, suffer from the tragedy of the commons, and economic solutions including property rights, tradable quotas, and cultural norms. In this video, we take a look at common goods. Common resources are nonexcludable but rival. For instance, no one can be excluded from fishing for tuna, but they are rival — for every tuna caught, there is one less for everyone else. Nonexcludable but rival resources often lead to what we call a “tragedy of the commons.” In the case of tuna, this means the collapse of the fishing stock. Under a tragedy of the commons, a resource is often overused and under-maintained. Why does this happen? And how can we solve this problem? Like we’ve done so many times throughout this course, let’s take a look at the incentives at play. We also discuss Nobel Prize Winner Elinor Ostrom’s contributions to this topic. Microeconomics Course: http://bit.ly/20VablY Next video: http://bit.ly/1SUt3SN Help us caption & translate this video! http://amara.org/v/GkqC/ Help us caption & translate this video! http://amara.org/v/IUH7/