We know that people tend to overuse common resources. This problem can be viewed as an example of
A)a game in which the players succeed in reaching the cooperative outcome.
B)the prisoners' dilemma.
C)a situation to which game theory does not apply because of a lack of strategic thinking.
D)a situation to which game theory does not apply because of too many decision-makers.

Question

Quizplus · Accepted Answer

The overuse of common resources is a classic example of the prisoners' dilemma in game theory, in which individuals act in their own self-interest despite a shared goal. The rational choice for each individual is to continue exploiting the resource, even though this will lead to its depletion in the long run, rather than cooperating and conserving it.

We Know That People Tend to Overuse Common Resources