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Tragedy of the Commons

Created Dec 23, 2024 economicssystemscoordination

Garrett Hardin’s 1968 essay described a pasture open to all herders. Each herder gains the full benefit of adding another animal but bears only a fraction of the overgrazing cost. Rational self-interest drives each to add more animals until the commons is destroyed. Individual rationality produces collective ruin.

The pattern appears everywhere. Fisheries collapse because each boat catches more before others can. Aquifers deplete because each farmer pumps before neighbors do. Traffic congests because each driver chooses the fastest route. The atmosphere warms because each emitter externalizes the cost. Whenever benefits are private and costs are shared, the commons is at risk.


Hardin’s original solutions were bleak: privatization or government control. But Elinor Ostrom’s fieldwork revealed a third way. Communities around the world have managed commons sustainably for centuries — alpine meadows, irrigation systems, lobster fisheries. They developed rules, monitoring, graduated sanctions. Not markets, not states, but self-governance.

Ostrom identified design principles for successful commons: clearly defined boundaries, rules matched to local conditions, collective choice arrangements, effective monitoring, graduated sanctions, conflict resolution mechanisms, and recognition by external authorities. No single principle suffices; they work as a system.


Depletion happens when coordination fails. When users can communicate, establish rules, and sanction defectors, cooperation becomes stable. The design of institutions determines whether shared resources survive or collapse. mechanism design applied to the commons.

The harder cases are global commons: the atmosphere, the oceans, the internet’s attention. No single community governs them; coordination requires unprecedented cooperation across cultures and borders. These are the defining challenges — tragedies of the commons at civilizational scale.

Related: prisoners dilemma, mechanism design, game theory, systems, carrying capacity