Social interaction and economic outcomes - two types of social interaction - The tragedy of the commons: a social dilemma

4 important questions on Social interaction and economic outcomes - two types of social interaction - The tragedy of the commons: a social dilemma

What was the tragedy of the commons?

A social dilemma in which self-interested individuals acting independently deplete a common resource, lowering the payoffs of all.

What is a social dilemma?

A situation in which actions, taken independently by individuals in pursuit of their own private objectives, may result in an outcome that is inferior to some other feasible outcome that could have occurred if people had acted together, rather than as individuals.

Why was the tragedy of commons a social dilemma?

Because individuals act independently for their own benefit to deplete a common resource, resulting in a negative outcome for all
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What are free riders?

Benefiting from the contributions of others to some cooperative project without contributing oneself.

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