6. Common resources and the tragedy of the commons Charles, Gilberto, and Lorenzo are crabbers who live next to a ocean that is open to crabbing; in other words, anyone is free to use the ocean for crabbing. Assume that these men are the only three crabbers who crab fish in this ocean and that the ocean is large enough for all three crabbers to crab fish intensively at the same time. Each year, the crabbers choose independently how many crabs to catch; specifically, they choose whether to crab fish intensively (that is, to place several crab traps in the water for long stretches of time, which hurts the sustainability of the ocean if enough people do it) or to crab fish nonintensively (which does not hurt the sustainability of the ocean). None of them has the ability to control how much the others crab fish, and each crabber cares only about his own profitability and not about the state of the ocean. Assume that as long as no more than one crabber crab fishes intensively, there are enough crabs to restock the ocean. However, if two or more crab fish intensively, the ocean will become useless in the future. Of course, crabbing intensively earns a crabber more money and greater profit because he can sell more crabs. The ocean is an example of because the crabs in the ocean are Charles's Profit-Maximizing Response Depending on whether Gilberto and Lorenzo both choose to crab fish either nonintensively or intensively, fill in Charles's profit-maximizing response in the following table, given Gilberto and Lorenzo's actions. Gilberto and Lorenzo's Actions Crab fish Nonintensively Crab fish Intensively and Which of the following solutions could ensure that the ocean is sustainable in the long run, assuming that the regulation is enforceable? Check all that apply. Develop a program that entices more crabbers to move to the area. Convert the ocean to private property, and allow the owner to sell crabbing rights. Outlaw intensive crabbing.
6. Common resources and the tragedy of the commons Charles, Gilberto, and Lorenzo are crabbers who live next to a ocean that is open to crabbing; in other words, anyone is free to use the ocean for crabbing. Assume that these men are the only three crabbers who crab fish in this ocean and that the ocean is large enough for all three crabbers to crab fish intensively at the same time. Each year, the crabbers choose independently how many crabs to catch; specifically, they choose whether to crab fish intensively (that is, to place several crab traps in the water for long stretches of time, which hurts the sustainability of the ocean if enough people do it) or to crab fish nonintensively (which does not hurt the sustainability of the ocean). None of them has the ability to control how much the others crab fish, and each crabber cares only about his own profitability and not about the state of the ocean. Assume that as long as no more than one crabber crab fishes intensively, there are enough crabs to restock the ocean. However, if two or more crab fish intensively, the ocean will become useless in the future. Of course, crabbing intensively earns a crabber more money and greater profit because he can sell more crabs. The ocean is an example of because the crabs in the ocean are Charles's Profit-Maximizing Response Depending on whether Gilberto and Lorenzo both choose to crab fish either nonintensively or intensively, fill in Charles's profit-maximizing response in the following table, given Gilberto and Lorenzo's actions. Gilberto and Lorenzo's Actions Crab fish Nonintensively Crab fish Intensively and Which of the following solutions could ensure that the ocean is sustainable in the long run, assuming that the regulation is enforceable? Check all that apply. Develop a program that entices more crabbers to move to the area. Convert the ocean to private property, and allow the owner to sell crabbing rights. Outlaw intensive crabbing.
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Transcribed Image Text:6. Common resources and the tragedy of the commons
Charles, Gilberto, and Lorenzo are crabbers who live next to a ocean that is open to crabbing; in other words, anyone is free to use the ocean for
crabbing. Assume that these men are the only three crabbers who crab fish in this ocean and that the ocean is large enough for all three crabbers to
crab fish intensively at the same time.
Each year, the crabbers choose independently how many crabs to catch; specifically, they choose whether to crab fish intensively (that is, to place
several crab traps in the water for long stretches of time, which hurts the sustainability of the ocean if enough people do it) or to crab fish
nonintensively (which does not hurt the sustainability of the ocean). None of them has the ability to control how much the others crab fish, and each
crabber cares only about his own profitability and not about the state of the ocean.
Assume that as long as no more than one crabber crab fishes intensively, there are enough crabs to restock the ocean. However, if two or more crab
fish intensively, the ocean will become useless in the future. Of course, crabbing intensively earns a crabber more money and greater profit because
he can sell
crabs.
The ocean is an example of
because the crabs in the ocean are
Charles's Profit-Maximizing Response
Depending on whether Gilberto and Lorenzo both choose to crab fish either nonintensively or intensively, fill in Charles's profit-maximizing response in
the following table, given Gilberto and Lorenzo's actions.
Gilberto and Lorenzo's Actions
Crab fish Nonintensively
Crab fish Intensively
Develop a program that entices more crabbers to move to the area.
and
Which of the following solutions could ensure that the ocean is sustainable in the long run, assuming that the regulation is enforceable? Check all that
apply.
Convert the ocean to private property, and allow the owner to sell crabbing rights.
Outlaw intensive crabbing.
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