populations of beaver, deer, and bears. Other animals, especially wolves and cougars
were exterminated as part of the colonial process of transforming wilderness to
civilization. The loss of species impacted the entire ecosystem, in the case of beaver,
the significant decline in population meant that dams and natural fisheries were no
longer extant, this augmented river flow, fish spawning activities and impacted
habitats, grazing, and ultimately increased erosion (Calloway 1997).
Returning to Hardin’s assertion of the tragedy of the commons, it is clear that
colonial cultural norms promoted the observed tragedy of the commons, in much the
same manner as Indigenous cultural norms averted it. The enabling action for the
sustainable use of resources appears to be embedded social norms; values impact
behaviors that then establish economic outcomes.
2.8
Perception of Resource Value, Market Outcomes, and Price
Economics is the social science discipline that evaluates the relationship between
human wants and the resources available to satisfy them. In identifying and
explaining the relationship between wants and resources, economists use broad
generalizations related to human behavior, arguably the most significant of which
relates to wants (Fagg 1981).
Wants are based on the premise that individual economic agents, individuals
interacting within the general economy, will always seek to have more of desirable
goods and services. Desirable goods include both normal goods, which are goods
that an individual will continue to purchase as their income increases and luxury
goods, which are goods that are not needed but are wanted to support an external
display or perception of status or wealth. Not all goods are desirable, for example,
inferior goods represent a classification of goods and services that will be reduced or
eliminated by consumers as their incomes increase.
The behavior of wanting more, sometimes referenced as unlimited wants, is a
social value, consistent with consumerism, which is defined as the focused act of
consuming goods and services to improve utility, the economic concept that defines
the benefit of consumption. Insatiability is not representative of an intrinsic human
characteristic but rather a learned behavior. This is an important point. If a behavior
is learned, it can be unlearned and a new behavior can emerge, which in turn can
produce a different economic outcome.
2.9
Competition and the Tragedy of the Commons
Market outcomes, price and quantity, are highly dependent on the information that
consumers and suppliers have available. Informational asymmetry, where one party
has more understanding or knowledge related to a good than another party, can
create price and quantity outcomes that may not effectively consider scarcity. This
results in market inefficiency, a situation where resource use is not efficiently
allocated by the market. This is a significant issue and one that consumers are only
24
M. Venkatesan
were exterminated as part of the colonial process of transforming wilderness to
civilization. The loss of species impacted the entire ecosystem, in the case of beaver,
the significant decline in population meant that dams and natural fisheries were no
longer extant, this augmented river flow, fish spawning activities and impacted
habitats, grazing, and ultimately increased erosion (Calloway 1997).
Returning to Hardin’s assertion of the tragedy of the commons, it is clear that
colonial cultural norms promoted the observed tragedy of the commons, in much the
same manner as Indigenous cultural norms averted it. The enabling action for the
sustainable use of resources appears to be embedded social norms; values impact
behaviors that then establish economic outcomes.
2.8
Perception of Resource Value, Market Outcomes, and Price
Economics is the social science discipline that evaluates the relationship between
human wants and the resources available to satisfy them. In identifying and
explaining the relationship between wants and resources, economists use broad
generalizations related to human behavior, arguably the most significant of which
relates to wants (Fagg 1981).
Wants are based on the premise that individual economic agents, individuals
interacting within the general economy, will always seek to have more of desirable
goods and services. Desirable goods include both normal goods, which are goods
that an individual will continue to purchase as their income increases and luxury
goods, which are goods that are not needed but are wanted to support an external
display or perception of status or wealth. Not all goods are desirable, for example,
inferior goods represent a classification of goods and services that will be reduced or
eliminated by consumers as their incomes increase.
The behavior of wanting more, sometimes referenced as unlimited wants, is a
social value, consistent with consumerism, which is defined as the focused act of
consuming goods and services to improve utility, the economic concept that defines
the benefit of consumption. Insatiability is not representative of an intrinsic human
characteristic but rather a learned behavior. This is an important point. If a behavior
is learned, it can be unlearned and a new behavior can emerge, which in turn can
produce a different economic outcome.
2.9
Competition and the Tragedy of the Commons
Market outcomes, price and quantity, are highly dependent on the information that
consumers and suppliers have available. Informational asymmetry, where one party
has more understanding or knowledge related to a good than another party, can
create price and quantity outcomes that may not effectively consider scarcity. This
results in market inefficiency, a situation where resource use is not efficiently
allocated by the market. This is a significant issue and one that consumers are only
24
M. Venkatesan