What economic concept describes the depletion of shared resources by individuals acting in their own self-interest?
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Tragedy of the Commons
It occurs when individuals acting in their own self-interest deplete a shared resource, such as clean water or air, even if it's not in anyone's long-term interest. It highlights the need for regulation or property rights.
Also asked as:
- What term describes the situation where individuals independently deplete a common resource, contrary to the group's long-term best interests?