What is the tragedy of the anticommons and how does it relate to market failures?

What is the tragedy of the anticommons and how does it relate to market failures?

The tragedy of the anticommons refers to a situation where multiple individuals or entities have ownership or control over different parts or aspects of a resource, leading to underutilization or inefficient use of that resource. It relates to market failures because it highlights the problem of incomplete property rights and the resulting inefficiencies in resource allocation. In an anticommons situation, the fragmentation of ownership or control can lead to transaction costs, coordination problems, and a lack of incentives for investment or innovation, ultimately resulting in market failure.