Tragedy Of The Commons: Why We Suck At Sharing

The tragedy of the commons is the phenomenon where many people enjoy access to a common resource, thereby overusing it and depleting or even destroying its value altogether. The finite, valuable resource is consumed. Individual restraint is not enough because more selfish actors replace them. The result is a tragedy for all. Some argue that overexploitation of the common resource is not inevitable. Now, you tell me: how do you make a very large group of people consistently restrain themselves from using something that provides value to them?

Aristotle observed the law himself. The philosopher wrote, “That which is common to the greatest number gets the least amount of care. Men pay most attention to what is their own: they care less for what is common.” Its a common paradigm in any system concerning a selfish actor and finite resource. In today’s world, it manifests in a variety of resource problems: water, forests, fish, gas, oil, and coal, among others. Logging of forests and burning them is depleting them. The oceans are overfished. The habitats of animals are destroyed.

The idea is simple. Resources available to everyone are depleted since each individual gains the maximum benefit by using as much of the resource as possible. Translation: we are selfish pricks. No single individual bears the cost of depletion. Rather, the cost of overuse is distributed amongst everybody. That’s the kicker: a misalignment between individual incentive and collective interest. For example, a fisherman catches too many fish since he wants to earn a more comfortable living. The reduced population affects all upcoming fishermen. But the selfish fisherman does not directly bear the full consequence of their action.

Real-world examples of tragedy of the commons:

• Overfishing: in many parts of the world, fish stocks are being depleted at ever-faster rates because each fisherman seeks to catch as many fish as possible to maximize their profit. Without sustainable quotas or regulations, the fish population declines. Eventually the livelihood of all fisherman and health of the marine ecosystem is threatened.

• Grazing on Common Land: in pastoral communities, if every herder grazes as many farm animals as possible on shared land, the pasture becomes overgrazed. Translated: too many animals eating grass and shitting on the land. Thus the area loses its fertility and all herders suffer from a lack of viable grazing locations.

• Water Usage: in regions where water is a common resource, individuals or companies draw excessive amounts of water for irrigation or industrial use. Over time, this can lead to water scarcity. This has ripple effects on everyone who relies on that resource for drinking, agriculture, or other purposes.

• Pollution of the Atmosphere: industries buy cheaper fuels that emit pollutants into the air to cut costs. They benefit individually while the public bears the health and environmental consequences. The overall air quality deteriorates. The result are widespread health issues and environmental degradation.

• Digital Commons: in online platforms, such as open-source software or digital content repositories, overuse or exploitation without contributing depletes the collective resources and reduces the incentive to contribute. The quality and sustainability of the digital resource suffers. The community as a whole is harmed.

How you can use the tragedy of the commons as a mental model: (1) see the common pot — identify areas in your personal life, team, community, or organization where resources are shared among stakeholders and ask, “Is this being overused or taken for granted because everyone benefits individually while the cost is distributed?”; (2) stop the selfish prick-dom — implement mechanisms that encourage sustainability, such as quotas, usage fees, or cooperative agreements so that each participant bears part of the cost of the resource; (3) make their wallets lighter — develop systems to monitor individual resource usage so that you expose those who use the most of a shared good; (4) protect the greater good — work with stakeholders to establish community norms that protect the resource to benefit all parties.