The Tragedy of the Commons
Imagine you were a rancher with a herd of cattle and a small field in which to graze them. One of your primary concerns include determining how many cattle the field could support. With too few cattle, you give up potential earnings that the field could readily sustain. But too many cattle consume the grass faster than the field could replenish it, resulting in malnourished cattle and degraded land quality.
Therefore, as a rancher with long-term prospects, inspecting and maintaining the field, planting new grass, and limiting the number of new cattle in the field all become a cornerstone of your business model. [Read more…]