In 1833 the Victorian economist William Forster Lloyd published Two Lectures on the Checks to Population, which introduced an idea we later understood as the Tragedy of the Commons. The example used was of a common grazing area and how the interests of the people using this “free” public land would inevitably work at odds with one another in maintaining the public land. Everyone had an incentive to take as much as they could, as quickly as they could, but no one had an incentive to put back.
Today this is best understood in the management of fisheries. You can’t own parcels of the ocean and even if you can assign areas to particular fishermen, the fish don’t pay attention to these boundaries. The fisherman has no incentive to limit his cod harvest because the fish he does not catch will simply swim over to the next guy, who will catch them.
READ MORE: http://thezman.com/wordpress/?p=8222