I share the frustration at these over-simple responses, but these examples actually have well-understood and often-suggested solutions in economics discussions.
The solution to tragedies of the commons is often “enforce property rights”. Identify individuals (or sometimes institutions) who are explicitly benefiting, define their benefits, and let them optimize usage.
The solution to prisoner’s dilemma is to jump out of the system. Allow communication, negotiation, and enforceable contracts that turn it into a repeated game.
Ronald Coase and others worked this out many decades ago.
I share the frustration at these over-simple responses, but these examples actually have well-understood and often-suggested solutions in economics discussions.
The solution to tragedies of the commons is often “enforce property rights”. Identify individuals (or sometimes institutions) who are explicitly benefiting, define their benefits, and let them optimize usage.
The solution to prisoner’s dilemma is to jump out of the system. Allow communication, negotiation, and enforceable contracts that turn it into a repeated game.
Ronald Coase and others worked this out many decades ago.
Could you please recommend a specific book on this topic, under Yoav Ravid’s comment?