How does the tragedy of the commons relate to public goods?

The tragedy of the commons relates to public goods as it illustrates the problem of overuse and depletion of shared resources.

The tragedy of the commons is a concept in economics that describes a situation where individual users, who have open access to a resource unhampered by shared social structures or formal rules that govern access and use, act independently according to their own self-interest and, contrary to the common good of all users, deplete or spoil the resource through their collective action. This concept is closely related to public goods, which are goods that are both non-excludable and non-rivalrous, meaning they are available to all and one person's use does not diminish another's.

Public goods, such as clean air, public parks, and street lighting, are available for everyone to use. However, because these goods are non-excludable and non-rivalrous, they are susceptible to overuse and depletion, a situation described by the tragedy of the commons. For example, a public park (a public good) can be overused and degraded if too many people use it without considering the impact of their actions on the park's sustainability. This is the tragedy of the commons - individuals acting in their own interest can ultimately lead to the degradation of a resource that is meant to be shared by all.

The tragedy of the commons also highlights the free-rider problem associated with public goods. Since public goods are available to all, individuals may take advantage of these goods without contributing to their maintenance or creation. This can lead to under-provision of the public good, as those who could contribute choose instead to free-ride on the contributions of others.

In conclusion, the tragedy of the commons is a powerful illustration of the challenges associated with managing and preserving public goods. It underscores the need for effective policies and mechanisms to prevent overuse and ensure the sustainable use of these valuable resources.