Question

PLEASE GIVE AS MUCH INFORMATION AS POSSIBLE

.a)Property vs. commons: which is preferred in a particular circumstance and why

B)When does it pay to define and enforce property rights? When do we use commons instead of property rights?

C)What conditions must be met for property rights to be established?

Answer 1

a) Property or private rights on something is preferred when there is a rivalry or excludability factor . In case of commons there will always be a free rider problem . That will lead to over exploitation of the property without replenishment . As for example land . If property rights are enforced then over grazing or over usage of land can be stopped . Hence when welfare is the motive then public goods or commons are required .

b) When the property belongs to an individual , association or government and needs to be used for benefits , trading , personal usage etc then the enforcement of property rights becomes utmost necessary to prevent encroachment and trespassing .

When common welfare of a cmmunity as a whole is the motive . No one has a personal hold on the property . When a good is required as a public good as for example land for grazing given to farmers . These are the cases where commons are used .

c) Property rights should be well defined , enforceable and transferable . Property rights should have a legal back up . They must have well defined ownership .