What causes the tragedy of the commons? (i) social and private incentives differ. (ii) common resources are not rival in consumption and are not excludable. (iii) common resources are not excludable but are rival in consumption

(i)  Social and private incentives differ.

(ii)  Common resources are not rival in consumption and are not excludable.

Explanation:

The tragedy of the commons is a term that describes a situation where people act in their own interests, regardless of whether the consequences of their actions will be good or bad for society, in fact the individual disregards the interests of society since your personal desires are fulfilled. The tragedy of the commons occurs when social and private incentives are different and common resources are not rivals in consumption and are not excluded.

The tragedy of the commons is a collective version of a basic problem of the so-called game theory: the prisoners' dilemma. The story is like this. Two criminals are arrested for a minor offense, such as stealing a wallet. But police suspect they are also involved in a murder. They are placed in separate cells. Each is offered a reduced penalty if they report their mate. Best for both of them is to be quiet. But as they do not know or have control over what the other will do, they end up cheating. The result is the worst possible, a high penalty for both.

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