Thursday, June 16, 2011

Tragedy of the Commons

While listening to a lecture from Dr. Craig Just, University of Iowa, Engineering, he had a fantastic analogy for the Tragedy of the Commons.

To illustrate the economic concept that a common resource will be consumed until its marginal utility is zero, Dr. Just said, "just think of an outhouse at a concert."  I thought this was outstanding.  By the end of the concert no one wants to use the resource for a variety of reasons.

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