In this module we introduce the market imperfection of common resources which have the feature of being non-excludable but rival in its usage. Notable examples of a common resource includes open pastureland, ocean fisheries, and irrigation systems. Private markets would tend to cause over-usage of these resources unless controlled, often by government regulation. We also highlight the contributions of the 2009 Nobel laureate Elinor Ostrom, the first female recipient of this award in economics. She studied conditions that would be helpful to facilitate private mechanisms in the regulation of common resources.

Common Resources - 30 minutes

A Notable Problem with Government - 6 minutes