Question

I need in word file not handwritten

Select a familiar or local Common Resource or Public Good .

• Assess the existence of free riders, externalities, cost-benefit analysis, likelihood of a “Tragedy of the Commons” issue, etc.
• Evaluate the controls currently in place to protect or maintain the resource/good
• Discuss the sustainability or need for change of the current status.

Answer 1

here i am taking the water pump established by government for the use of a society for drinking water purpose. we some time see common water pump in villages of INDIA established by government. people of that society as well as people from near by come and take water from that place. it has a possitive externality in that way when the water supply is being inturrpted in the neighbour area, people generally come to take water from that particular water pump. for the water supply the society people pay some fixed amount of water tax jointly. but here when the neighbour hood people come to take water they are not being prohibited and they are not even paying water tax so its a free rider problem as well. some times people over utilise it because there is no such copyright is being given to anyone. its for drinking purpose but often people take a lots of water and use it for other purposes as well which ensures tragedy of commons. by taking into consideration these problems government has enforced a strict rule that people should take a certain amount of water per family and secondly the society people are the only ones who will use the water to prevent free ridership. even if there is rules made for the people to follow people still find loop holes and enjoy the water so there is a need to check and re check the situation often to maintain harmoney.