(I learned about this for the first time in grad school and it blew me away. Never saw the world the same way again. It’s one of those concepts that permanenetly frames how you view the world when the discussion revolves around problems of shared resources. It forces you to think in terms of first-principles.)
Tragedy of the Commons is a concept in economics and game theory that describes a situation where individuals, acting in their own self-interest, overuse and deplete a shared resource—ultimately harming the entire group, including themselves.
Breakdown:
- The “commons” refers to a shared, finite resource—like a public park, water supply, or, in my case, a neighborhood basketball court.
- The “tragedy” arises when each person reasons: “If I invite one more friend or use the court a little longer, it won’t hurt.” But when everyone thinks this way, the resource becomes overused, degraded, and possibly unusable for all.
Example in my HOA:
A few residents repeatedly give gate access to non-residents to use the basketball court. On their own, each decision seems minor. But over time, the court becomes noisy, crowded, and a source of conflict—especially for residents living nearby. Eventually, the quality of life for the entire neighborhood suffers.
Insight:
The tragedy lies in the disconnect between individual benefit and collective cost. Unless rules, incentives, or norms are established to protect the commons, everyone loses—even those who contributed the least to the problem.
