Explain the tragedy of the commons in a short paragraph usi

Explain the \"tragedy of the commons\" in a short paragraph - using your own words! 1. 2. Even ancient technologies have externalities. Give some positive and negative examples for one of the following technologies: agriculture, fire, or animal domestication.

Solution

1. Tragedy of commons is defined as the situation where the common pooled resources gets exploited by few consumers causing shortages for the others. Here it is difficult to distribute usage equally to all of the consumers because of collective right leading to depletion of the resources.

2. Agriculture:
Positive externality: Increase in food production, increase in health condition
Negative externality: Destruction of forests, reduction in soil health because of more fertilizers, clashes with forest animals
Fire:
Positive externality: Increase in health condition by consuming healthy food, helps in increasing temperature for various purpose
Negative externality: Causes accidents, explosions, increases global warming, reduction in quality of life