Explain the Concept of the Tragedy of the Commons
Please read each discussion and reply. Please keep them separate. I have included the topic in which they essays are written on. In addition to other comments you may have, address the following in your response posts:
What government action do other students believe can have the greatest outcome when negative externalities are present?
Brainstorm possible methods for avoiding the tragedy of the commons in a free-market economy.
Use any personal experience, if appropriate, to help support or debate other students' posts. If differences of opinion occur, debate the issues professionally and provide examples to support your opinions.
Topic:Discuss the tragedy of the commons in a free-market economy. Address the following in your response:
Explain the concept of the tragedy of the commons
Can it be avoided in a true free-market economy? Why or why not?
Identify three government actions that you believe can have a positive, efficient outcome in the midst of negative externalities.
Is government intervention necessary to prevent the depletion of shared resources? Why or why not? What other methods can be implemented to help manage the situation?
Response 1: The tragedy of commons is an economic problem in which each individual tries to get the greatest benefit from any given resource. As the demand for the resource overwhelms the supply, each individual who can consume additional unit directly harms others who cannot enjoy the benefits. Tragedy of the commons cannot be avoided in a true free-market economy because Externalities are common everywhere in our everyday life. And we as producers and consumers are affected by government policies and strategies designed to promote environmental protection and improvement. There has to be a goal to define property rights in all natural resources in order to avoid the tragedy of the commons.
Three government actions that can have positive, efficient outcome in the midst of negative externalities are education this can increase societal, incentive to find technology that can reduce pollution, and research and development. Government intervention is necessary to prevent the depletion of shared resources because they can increase economic efficiency, when markets inefficiently allocate resources. The government also need to intervene to ensure those resources are not depleted.
Response 2: The tragedy of the commons created by Garrett Hardin, is a concept which can be traced back to Adam Smith. It refers to a situation where individuals or private economic agents exploit scarce and rival common environmental resources for their own rational, self-interested aims, leading to over-production and the possible permanent depletion of the resource for all.
Hardin’s argument was widely accepted by economists and free-market enthusiasts. The solution to the dilemma, it seemed obvious, was privatization,
Successful management of the commons will always be more likely at the smaller scale, where the impacts are visual and obvious, and where cooperation and negotiation is easier.
Discussion 9
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Response 1
In the first response, the writer indicates that the tragedy of commons cannot be avoided in a free market due to the existence of externalities in the economy. However, the writer was able to suggest three government actions which can be used to curb negative externalities. One of the government actions highlighted is education. Education is one of the key actions that any government can use to empower their citizens. In this case, people need to be educated on the role and rights as both producers and consumers in the economy. Education can also be used to educate people on the need to use shared resources efficiently. Through education, people can change their moral values towards shared resources. Governments also need to empower their citizens on ways to counter the tragedy of commons. Secondly, the writer notes that incentives will help in avoiding the tragedy of commons. Rewarding firms that use shared resources effectively is a positive way to avoiding the tragedy of commons. Some countries like China and the United States of America are already applying this strategy in fighting the issue of pollution. Through technology, people can produce goods and services that are efficient. For example, firms can use technology to create products that reduce pollution. Research and develo...