Economics Supply And Demand Questions
Common resources have the following characteristics:
1. Rivalry: Common resources are rivalrous, meaning that their use by one individual reduces the availability or quality of the resource for others. For example, if one person fishes in a common fishing ground, there are fewer fish available for others.
2. Non-excludability: Common resources are non-excludable, meaning that it is difficult to exclude individuals from using or accessing the resource. It is challenging to prevent someone from using a common resource like a public park or a clean air resource.
3. Tragedy of the Commons: Common resources are prone to the tragedy of the commons, which refers to the overuse or depletion of the resource due to individuals pursuing their self-interest without considering the long-term consequences. This can lead to the degradation or exhaustion of the resource.
4. Lack of property rights: Common resources often lack clear property rights, making it challenging to establish ownership or enforce regulations. This can result in the inefficient allocation and management of the resource.
5. Need for collective action: Due to the characteristics mentioned above, the sustainable management of common resources often requires collective action and cooperation among users. This can involve the establishment of regulations, agreements, or institutions to ensure the fair and efficient use of the resource.