Public Goods, Common Resources, and Property Rights — Tragedy of the Commons & Free Rider Problem Explained | Chapter 11 of Principles of Microeconomics
Public Goods, Common Resources, and Property Rights — Tragedy of the Commons & Free Rider Problem Explained | Chapter 11 of Principles of Microeconomics How do markets sometimes fail to allocate resources efficiently, especially when dealing with public goods and common resources? Chapter 11 of Principles of Microeconomics explores why goods like clean air, national defense, and fisheries often require special consideration—and what can be done when traditional market mechanisms fall short. This summary provides a clear overview of excludability, rivalry, property rights, and the key issues that shape public policy and welfare economics. 🎥 Watch the full chapter summary below and subscribe to Last Minute Lecture for more textbook breakdowns and academic study guides! Types of Goods: Excludability and Rivalry The chapter begins by classifying goods based on two characteristics: excludability (whether people can be prevented from using a good) and rivalry ...