key term - Tragedy of the commons

Definition

The tragedy of the commons occurs when individuals act in their own self-interest and overuse a shared resource, leading to its depletion or degradation, despite understanding that this is against everyone's long-term interest. It highlights a conflict between individual interests and the common good in managing public resources.

Related terms

Collective action problem: A situation where all individuals would benefit from working together to achieve a common goal, but fail to do so because they prioritize personal gain over collective welfare.

Public goods: Goods that are non-excludable and non-rivalrous, meaning no one can be prevented from accessing them, and one person's use does not reduce availability to others.

Free rider problem: A situation in which some individuals benefit from resources or services without paying for them or contributing to their provision, relying on others to shoulder the cost