Which of the following best illustrates the concept of the tragedy of the commons?

• A. Fishermen overharvesting fish from a public lake, leading to depletion of the fish population.
• B. A company polluting a river because it does not have to pay for the environmental damage.
• C. A person enjoying a public fireworks display without paying for it.
• D. A government providing national defense to all citizens regardless of individual contributions.

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the concept of the tragedy of the commons. It occurs when individuals, acting independently according to their own self-interest, overuse and deplete a shared resource, leading to long-term collective loss.
2. Step 2: Identify the key elements in each option: a shared resource, individual incentives to overuse it, and the resulting depletion or degradation of that resource.
3. Step 3: Analyze the option 'Fishermen overharvesting fish from a public lake.' Here, the fish population is a common resource, and each fisherman benefits from catching more fish, but collectively they risk depleting the fish stock.
4. Step 4: Compare this with other options: pollution without paying is an externality issue, enjoying a public fireworks display without paying is a free-rider problem, and national defense provision is a public good scenario without depletion of a resource.
5. Step 5: Conclude that the tragedy of the commons is best illustrated by the overuse and depletion of a shared natural resource, as in the fishermen example.