ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The tragedy of the commons refers to a situation in which individuals with access to a public resource (also called a common) act in their own interest and, in doing so, ultimately deplete the resource. This economic theory was first conceptualized in 1833 by British writer William Forster Lloyd.

Detailed explanation-2: -The tragedy of the commons is an economic theory that postulates that individuals tend to exploit shared resources such that the demand greatly outweighs supply, and subsequently, the resource becomes unavailable for the whole.

Detailed explanation-3: -The definition of the Tragedy of the Commons is an economic and environmental science problem where individuals have access to a shared resource and act in their own interest, at the expense of other individuals. This can result in overconsumption, underinvestment, and depletion of resources.

Detailed explanation-4: -In essence, the Tragedy of the Commons arises because of an externality. When one family’s flock grazes on the common land, it reduces the quality of the land available for other families. Because people neglect this negative externality when deciding how many sheep to own, the result is an excessive number of sheep.

Detailed explanation-5: -“The Tragedy of the Commons, ”1 cited as an irrefutable argument for the superior efficiency of private property rights with respect to land and resource uses and, therefore, as an irrefutable justification for privatization.