|Due By (Pacific Time)
||11/11/2017 08:00 pm
Rational Behavior and Competitive Markets
As James Madison said in 1788, “If men were angels, no Government would be necessary” (Federalist, no. 51). That is, if all men were angels. But in a world in which all resources are limited, a single non-angel in the commons spoils the environment for all.
Consider the following prompts when responding to the discussion this week:
- Define the problem of the tragedy of the commons and provide at least one example illustrating the concept.
- Explain how the free-rider problem can lead to market failures.
Use APA format when referring to your textbooks or any outside sources throughout the course.