What is the tragedy of the commons in relation to public goods?

The tragedy of the commons refers to a situation where a commonly owned resource, such as a public good, is overused or depleted due to individuals acting in their own self-interests. In the context of public goods, the tragedy of the commons occurs when individuals consume or exploit the public good without considering the long-term consequences or the impact on others.

Public goods are non-excludable and non-rivalrous, meaning that they are available for everyone to use and one person's use does not diminish the availability for others. Examples of public goods include clean air, national defense, and public parks. However, because individuals do not bear the full cost of their consumption, they have an incentive to overuse or exploit the public good.

For instance, if a public park is available for everyone to use, individuals may be tempted to litter, damage the facilities, or overcrowd the park without considering the negative effects on others. This overuse or exploitation can lead to the degradation or depletion of the public good, ultimately harming society as a whole.

The tragedy of the commons highlights the need for government intervention or regulation to prevent the overuse or depletion of public goods. This can be achieved through measures such as imposing usage fees, implementing regulations, or establishing property rights to ensure sustainable and equitable access to public goods. By addressing the tragedy of the commons, society can better manage and preserve public goods for the benefit of all.