6. Common resources and the tragedy of the commons Brian, Edison, and Kevin are trappers who live next to a recreational hunting area that is open to trapping; in other words, anyone is free to use the recreational hunting area for trapping. Assume that these men are the only three trappers who trap in this recreational hunting area and that the recreational hunting area is large enough for all three trappers to trap intensively at the same time. Each year, the trappers choose independently how often to trap; specifically, they choose whether to trap intensively (that is, to set several traps and hunt long hours, which hurts the sustainability of the recreational hunting area if enough people do it) or to trap nonintensively (which does not hurt the sustainability of the recreational hunting area). None of them has the ability to control how much the others trap, and each trapper cares only about his own profitability and not about the state of the recreational hunting area. Assume that as long as no more than one trapper traps intensively, there are enough animals to restock the recreational hunting area. However, if two or more trap intensively, the recreational hunting area will become useless in the future. Of course, trapping intensively earns a trapper more money and greater profit because he can sell more animals. The recreational hunting area is an example of and because the animals in the recreational hunting area are Depending on whether Edison and Kevin both choose to trap either nonintensively or intensively, fill in Brian's profit-maximizing response in the following table, given Edison and Kevin's actions. Edison and Kevin's Actions Trap Nonintensively Trap Intensively Brian's Profit-Maximizing Response Which of the following solutions could ensure that the recreational hunting area is sustainable in the long run, assuming that the regulation is enforceable? Check all that apply. Outlaw intensive trapping. Convert the recreational hunting area to private property, and allow the owner to sell trapping rights. Develop a program that entices more trappers to move to the area.
6. Common resources and the tragedy of the commons Brian, Edison, and Kevin are trappers who live next to a recreational hunting area that is open to trapping; in other words, anyone is free to use the recreational hunting area for trapping. Assume that these men are the only three trappers who trap in this recreational hunting area and that the recreational hunting area is large enough for all three trappers to trap intensively at the same time. Each year, the trappers choose independently how often to trap; specifically, they choose whether to trap intensively (that is, to set several traps and hunt long hours, which hurts the sustainability of the recreational hunting area if enough people do it) or to trap nonintensively (which does not hurt the sustainability of the recreational hunting area). None of them has the ability to control how much the others trap, and each trapper cares only about his own profitability and not about the state of the recreational hunting area. Assume that as long as no more than one trapper traps intensively, there are enough animals to restock the recreational hunting area. However, if two or more trap intensively, the recreational hunting area will become useless in the future. Of course, trapping intensively earns a trapper more money and greater profit because he can sell more animals. The recreational hunting area is an example of and because the animals in the recreational hunting area are Depending on whether Edison and Kevin both choose to trap either nonintensively or intensively, fill in Brian's profit-maximizing response in the following table, given Edison and Kevin's actions. Edison and Kevin's Actions Trap Nonintensively Trap Intensively Brian's Profit-Maximizing Response Which of the following solutions could ensure that the recreational hunting area is sustainable in the long run, assuming that the regulation is enforceable? Check all that apply. Outlaw intensive trapping. Convert the recreational hunting area to private property, and allow the owner to sell trapping rights. Develop a program that entices more trappers to move to the area.
Chapter1: Making Economics Decisions
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Transcribed Image Text:6. Common resources and the tragedy of the commons
Brian, Edison, and Kevin are trappers who live next to a recreational hunting area that is open to trapping; in other words, anyone is free to use the
recreational hunting area for trapping. Assume that these men are the only three trappers who trap in this recreational hunting area and that the
recreational hunting area is large enough for all three trappers to trap intensively at the same time.
Each year, the trappers choose independently how often to trap; specifically, they choose whether to trap intensively (that is, to set several traps and
hunt long hours, which hurts the sustainability of the recreational hunting area if enough people do it) or to trap nonintensively (which does not hurt
the sustainability of the recreational hunting area). None of them has the ability to control how much the others trap, and each trapper cares only
about his own profitability and not about the state of the recreational hunting area.
Assume that as long as no more than one trapper traps intensively, there are enough animals to restock the recreational hunting area. However, if two
or more trap intensively, the recreational hunting area will become useless in the future. Of course, trapping intensively earns a trapper more money
and greater profit because he can sell more animals.
The recreational hunting area is an example of
and
because the animals in the recreational hunting area are
Depending on whether Edison and Kevin both choose to trap either nonintensively or intensively, fill in Brian's profit-maximizing response in the
following table, given Edison and Kevin's actions.
Edison and Kevin's Actions
Trap Nonintensively
Trap Intensively
Brian's Profit-Maximizing Response
Which of the following solutions could ensure that the recreational hunting area is sustainable in the long run, assuming that the regulation is
enforceable? Check all that apply.
Outlaw intensive trapping.
Convert the recreational hunting area to private property, and allow the owner to sell trapping rights.
Develop a program that entices more trappers to move to the area.
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