Gather round and I will tell you a tale. Story time!

Concept #1: Free Rider Problem

Concept #2: Tragedy of the Commons

Practice: Making customers pay per use of a public good is inefficient because:

Practice: In the case of a shared pasture, what is the rational strategy of herdsmen acting in their own best interests?

Practice: Which of the following environmental issues is not an example of the tragedy of the commons?