Econ 145- HW1done

Econ 145- HW1done - Chen 1 Ping-An Annie Chen A07413761...

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Chen 1 Ping-An Annie Chen A07413761 Econ 145 Professor Squires HW 1 18 April 2008 Common Property and Property Rights The founding of every great nation is inspired by the need for ownership or possession of certain rights. Herein lays an issue with the use of common property to certain individuals. Common property includes a variety of resources that need a kind of allocation management. Following gives an introduction of this issue of common property by examining the definitions of common property, public goods, externalities, and tragedy of commons. The problem with commons is addressed in the theory known as the tragedy of commons. In the tragedy of commons, the theory addresses the negative externalize of consumption as an issue because of the finite characteristic of common goods. The need to regulate common resources is an action that is undertaken through the use of property rights. Examining tragedy of commons as the fundamental negative consequence that results from common property produces the need to observe property rights, their main characteristics and their effect on tragedy of commons. Hardin's observation on the evolution of regulation and the trade offs between fair verses efficient regulation. On the contrary, when studying indigenous villages Wade finds that certain indigenous populations naturally regulated their common resources. Cinner observes forces that are related to regulation and their correlation with extensive or decreased regulation. Examining assertions about the management of common goods in the theory of tragedy of commons utilizing the tool of property rights from Hardin, Wade, and Cinner, proposes a comprehensive analysis and study of addressing problem with tragedy of commons through the utilization of property rights and regulation of utilization. The use of common property is an issue of finite resources. The definition of local common property resources “must do two things: first defined common property resources, and secondly,
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Chen 2 distinguish local from other kinds of common property resources” (Seabright 1). Common property is a type of public good, which is a good that is rivalrous but non-excludable. Rivalrious is a resource that is found unavailable once it is used by another individual, therefore making it a resource that is subject to competition for consumption. A good is excludable when an individual can exclude others from using a certain good. A major issue in public goods is the lack of excludability that protects the resource from being depleted. For example, stalk flow production renews itself in a natural process of birth and disease where it is harvested from stalk but if it is over harvested then the flow of stalk with decline over time. Another issue with a common resource is the issue of congestion or crowding, which is a form of technical externality where the problem of public good and common resources occurs when if there is too much demand for a good there is an increase in the marginal cost of harvesting the
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Econ 145- HW1done - Chen 1 Ping-An Annie Chen A07413761...

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