Common Pool Resources

These two characteristics create what's known as the tragedy of the commons, which is when individuals prioritize themselves over others, causing the depletion of the resource. 

• Here is an example:

You, and the rest of your village, live near a lake with fish in it. The fish is a common pool resource, because:

1. You cannot prevent others from fishing (non-excludable)

2. The more you fish, the less others will get (rivalrous)

You know that if everyone fishes too much, the fish population will die out and your village will run out of food. However, you think that if the population will eventually deplete, you should probably fish lots now so you have some spare when the resource runs out. 

In other words, you act in your own best interest, at the expense of others. The fish (the common pool resource) eventually die out, as you have over-consumed the shared resource.

Link to Negative Externalities (AO2)

• Tragedy of the Commons is a result of overproduction or overconsumption of a certain resource (either a negative externality of production or consumption)

• The use of the resource causes negative effects on society

  • • In the fishing example, society runs out of fish

So in short, common pool resources are exploited, causing tragedy of the commons, an example of a negative externality of either production or consumption