What is meant by the tragedy of the commons?

The term "tragedy of the commons" refers to the situation in which individuals, acting in their own self-interest, collectively deplete a shared resource, leading to long-term negative consequences for the entire community. This concept highlights how common resources, like fisheries, forests, or public pastures, can become overused and degraded when everyone tries to maximize their personal benefit without regard for others or the sustainability of the resource.

In this context, when a resource is shared among individuals or groups, each person might exploit it as much as possible, leading to its eventual depletion. This phenomenon arises because the costs of overuse are typically distributed among all users, while the benefits are accrued individually. As a result, without proper management or regulations, such resources can become overexploited and potentially lead to scarcity or complete depletion, harming everyone who relies on it.