Common Resources (Common Goods) in Economics

This video discusses common resources (aka common goods) in economics.  A common resource is any resource which is nonexcludable and rivalrous.  This means that there is a pool of scarce resources (e.g., a lake and the fish it contains) to which it is difficult to restrict access.  The video discusses catching lobsters in the ocean as an example of how a common resource can be subject to overuse.  The video also uses a graph to show how a negative externality is created when lobstermen continue to increase the number of lobster-catching boats beyond the quantity which is socially optimal.  This occurs because each lobster-catching company considers only its only marginal private benefit and doesn't take into consideration the fact that any additional boats may only catch lobsters that another lobster company would have caught anyway.

This video was funded by a Civic Engagement Fund grant from the Gephardt Institute for Civic and Community Engagement at Washington University in St. Louis.—
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• #education
• #common_resource
• #tragedy_of_the_commons
• #externality
• #externalities
• #economics
• #overfishing
• #public_policy