Economics Externalities Questions Medium
The tragedy of the anticommons refers to a situation where multiple individuals or entities have separate ownership rights over different parts or aspects of a common resource, leading to underutilization or inefficient use of the resource. In this scenario, each owner has the ability to exclude others from using their specific portion of the resource, which can result in a lack of coordination and cooperation among the owners.
Unlike the tragedy of the commons, where a common resource is overused or depleted due to the absence of property rights, the tragedy of the anticommons occurs when too many property rights exist, leading to a fragmented ownership structure. This can create barriers to entry and transaction costs, making it difficult for individuals or businesses to gain access to and utilize the resource efficiently.
For example, imagine a lake that is owned by multiple individuals who each have exclusive fishing rights to specific sections of the lake. If each owner exercises their right to exclude others from fishing in their designated area, it may result in underutilization of the lake's fishing potential. This is because the fragmented ownership structure prevents efficient coordination and cooperation among the owners, leading to a suboptimal outcome for society as a whole.
The tragedy of the anticommons highlights the importance of considering property rights and ownership structures when dealing with common resources. It emphasizes the need for effective coordination mechanisms, such as negotiation, cooperation, or the establishment of common property rights, to ensure the efficient use and allocation of resources.