Private ownership of a common resource works well when the resource is scarce.

Question

Quizplus · Accepted Answer

Private ownership provides economic incentives for individuals to conserve and manage the resource efficiently when its supply is limited or scarce. This is because the owners can derive personal benefits from the resource, such as profits or enjoyment, and have an incentive to ensure its sustainability for the long term. Otherwise, if the resource were freely accessible or commonly owned, there would be a risk of overuse or depletion due to the tragedy of the commons, where each user would try to maximize their individual benefits at the expense of others and the shared resource.

Private Ownership of a Common Resource Works Well When the Resource