The Tragedy of the Commons: How Shared Resources Get Destroyed by Self-Interest
In medieval England, villages had common grazing land—the “commons”—where all villagers could graze their sheep. Each shepherd faced a decision: How many sheep should I graze? The logic was simple: Adding one more sheep: I get 100% of the profit Cost of overgrazing: Shared among all shepherds So every rational shepherd added more sheep. And more. And more. Until the commons was destroyed. Overgrazed. Barren. Worthless to everyone. This wasn’t malice. Each shepherd was acting rationally in their own self-interest. ...