What is the tragedy of the commons?

What is the tragedy of the commons?

The tragedy of the commons refers to a situation where a shared resource, such as a common grazing land or a fishery, is overexploited or depleted due to individuals acting in their own self-interest. In this scenario, each individual has an incentive to maximize their own benefit from the resource, leading to its degradation or depletion, ultimately harming everyone involved. The tragedy of the commons highlights the failure of unregulated markets to account for the negative externalities associated with the use of common resources.