Common Resources are both Rival and Non-Excludable which means that the use by one individual imposes an negative externality upon everyone else. Without an intervention by a government, these items will be destroyed by over use. Where do we see Common Resource problems in everyday life? - Trafc on the Freeway - Pollution in the Environment - Fish in the Ocean Post- Dene a Common Resource Problem in society and/or the world. Why is this a Common Resource Problem? Offer a Coase, Tax, or Regulation solution to your problem. Explain how your solution will limit the negative externality of the problem. (Remember- Common Resource Externalities are generated by over consumption) Rival? Yes Private Goods - Ice Cream Cones - Clothing - Congested Toll Roads Natural Monopolies (Club Goods) - Fire Protection - Cable TV - Un-congested Toll Roads Excludable? N0 Common Resources - Fish in the Ocean 0 The Environment . Congested non-toll roads Public Goods - Tornado Siren - National Defense - Un-congested non-toll roads Rival: Rival goods are goods whose consumption by one consumer prevents simultaneous consumption by other consumers. Excludable: a good or service is said to be excludable when it is possible to prevent people who have not paid for it from enjoying its benets, and non-excludable when it is not possible to do so. Free Rider Problem: A free rider is someone who can enjoy an item without paying for it. The item is nonrival and non- exclusive