6. Common resources and the tragedy of the commons Felix, Larry, and Raphael are

Question

6. Common resources and the tragedy of the commons Felix, Larry, and Raphael are hunters who live next to a recreational wildlife game area that is open to hunting: in other words, anyone is free to use the recreational wildlife game area for hunting. Assume that these men are the only three hunters who hunt in this recreational wildlife game area and that the recreational wildlife game area is large enough for all three hunters to hunt intensively at the same time. hunt long hours, which hurts the sustainability of the recreational wildlife game area if enough people do it) or to hunt nonintensively (which does not hurt the sustainability of the recreational wildlife game area). None of them has the ability to control how much the others hunt, and each hunter cares only about his own profitability and not about the state of the recreational wildlife game area. Assume that as long as no more than one hunter hunts intensively, there are enough animals to restock the recreational wildlife game area. However if two or more hunt intensively, the recreational wildlife game area will become useless in the future. Of course, hunting intensively earns a hunter The recreational wildlife game area is an example of because the animals in the recreational wildlife game area are and Depending on whether Larry and Raphael both choose to hunt either nonintensively or intensively, fill in Felix's profit-maximizing response in the following table, given Larry and Raphael's actions. Larry and Raphael's Actions Hunt Nonintensivel Hunt Intensively Felix's Profit-Maximizing Response Which of the follovwing solutions could ensure that the recreational wildlife game area is sustainable in the long run, assuming that the regulation is enforceable? Check all that apply. Outlaw intensive hunting. D Convert the recreational vwildlife game area to private property, and allow the owner to sell hunting rights. Develop a program that entices more hunters to move to the area.

Explanation / Answer

The recereational wildlife game is semi public good because of non excludable and rivalrous character

Felix should hunt intensively of what other plays because hunting intensively is a dominant strategy for Felix

Ans is B. Property right will help the public good to be utilised properly.

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