The tragedy of commons

Its a long and laborious read. But the basic idea of the "commons" and "mutual coercion"  are interesting. It gives a handle to some of these concepts that all of us are aware of at some level.

http://www.sciencemag.org/cgi/content/full/162/3859/1243

about the author [wiki]:

Garrett James Hardin (April 21, 1915 – September 14, 2003) was a leading and controversial ecologist from Dallas, Texas, who was most known for his 1968 paper, The Tragedy of the Commons. He is also known for Hardin's First Law of Ecology, which states "You cannot do only one thing", and used the ubiquitous phrase "Nice guys finish last" to sum up the "selfish gene" concept of life and evolution.^[1]

<snip> The tragedy of the commons develops in this way. Picture a pasture open to all. It is to be expected that each herdsman will try to keep as many cattle as possible on the commons. Such an arrangement may work reasonably satisfactorily for centuries because tribal wars, poaching, and disease keep the numbers of both man and beast well below the carrying capacity of the land. Finally, however, comes the day of reckoning, that is, the day when the long-desired goal of social stability becomes a reality. At this point, the inherent logic of the commons remorselessly generates tragedy.

As a rational being, each herdsman seeks to maximize his gain. Explicitly or implicitly, more or less consciously, he asks, "What is the utility to me of adding one more animal to my herd?" This utility has one negative and one positive component.

1) The positive component is a function of the increment of one animal. Since the herdsman receives all the proceeds from the sale of the additional animal, the positive utility is nearly +1.

2) The negative component is a function of the additional overgrazing created by one more animal. Since, however, the effects of overgrazing are shared by all the herdsmen, the negative utility for any particular decision-making herdsman is only a fraction of 1.

Adding together the component partial utilities, the rational herdsman concludes that the only sensible course for him to pursue is to add another animal to his herd. And another; and another. . . . But this is the conclusion reached by each and every rational herdsman sharing a commons. Therein is the tragedy. Each man is locked into a system that compels him to increase his herd without limit--in a world that is limited. Ruin is the destination toward which all men rush, each pursuing his own best interest in a society that believes in the freedom of the commons. Freedom in a commons brings ruin to all. </snip>