9 December
Common property resources
Like a fishery
Rivalry – the consumption decisions by one individual affect another’s ability to consume
E.g. if I drink Monster energy drink, you can’t drink that one
Excludability – One individual can put up barriers to prevent others from consuming
Rival? Excludable? Then…
Yes Yes
Soda
Cars
Backpacks
“Private Goods”
No
Fish (ocean)
Cattle grazing
“Common Goods”
No Yes
Large tracts of
land
Property
Telephone lines
“Club Goods”
No
Public parks
Solar power
“Public Goods”
Please do not confused common goods and public goods
Common property resources
Imagine a field.
A guy has a cow he wants to put on the field so it can eat and grow
This guy will continue to add cattle until MB = MC
What if there are more cattle ranchers?
