Answer to Question #87557 in Microeconomics for Reshma Kuriakose

Question

Why are fish in the ocean an example of a resource that suffers from the tragedy of the commons but cattle grazing in a farmer's pasture do not suffer from the tragedy of the commons?

Answer 1

Fish in the ocean suffer from the tragedy of commons since they are public resources, whose users wish to maximize profits by all means, including overfishing. However, cattle grazing in a farmer’s pasture do not suffer from the same problem since the farmer utilizes the pastures prudently to ensure their sustainability.