Fishing until The Pond is empty
A resource dilemma can arise when a collection of people mutually control a band of resources, for instance, a community grazing land, a populace of fish or communal health services. Normally, the resource pool is occasionally replenished and produces a stable and protracted resource flow. The resource dilemma occurs when users are lured to consume above what the pool of resource can produce continually. Failure to control usage at a sustainable level would result to adverse effects on the resources, therefore, putting at danger any future benefits to the community. The case of the fishpond is tremendously significant concerning the resource dilemma and it would be prudent to formulate measures that would ensure equal sharing of the fish. It is also vital to know how to deal with uncertainties that might occur in the process of enhancing equality amongst the community members. This is due to the fact that such uncertainties would create a stumbling block to any developments on the optimum usage of the fish pond.
Essentially, the resource dilemma presents a situation where there is lack of Pareto efficiency in consumption and production of resources. It would be essential to develop a model that would ensure a balanced acquisition of the available resources without exhausting them. This model would specify the Pareto efficient level of consumption for every individual and therefore try to alleviate the dilemma of the fish pond. This concept of resource dilemma is widely referred to as the tragedy of the commons in economics. It represents a situation where individuals in the society act rationally from self-interests. This takes place notwithstanding the fact that depleting the common resources is not in accordance with the society’s long-term goals. In the case of the fishpond, it would be highly encouraged that individuals act in total rationality as they consume the fish. This is to ensure that they are considerate of the future supply of fish. A rational consumer is always vigilant of what he or she will be consuming tomorrow. Hence individuals would act in this sense and the fish would not be exhausted in the pond. What should be done is to make it certain the maximum amount of fish that a person can harvest from the pond.
This would further make it possible for sustainable production that would be enough for the society in the future. Uncertainties that prevail due to lack of knowledge of the optimum amount of fish that individuals should fish in the pond can be tackled by introducing an expert. The expert would be in a better position to know the available fish stock and the supply that should be left in order to allow for a sustainable production for the society. Therefore, it would be possible to determine the optimum amount of fish that an individual should consume from the pond. Since this is public good; it becomes difficult to place the exact amount of utility that an individual draws from a certain number of fish. Hence, there exists a difficulty in coming up with the Pareto efficient consumption level. Consequently, having the society know about the actual amount of fish population would be crucial in ensuring that individuals do not act in self-interest. This is attributed to the fact that if people know that a good is in scarcity they will be ready to comprise for a smaller amount of consumption rather than having none in the future.
This further brings in the issue of scarcity forces choice. Scarcity means that individuals want to consume more than what is available. It is the individuals’ income that limits their consumption and thus brings about scarcity. Since resources are scarce it is necessary that people should make a choice of the goods to consume. This would definitely involve choosing goods that yield higher utility for the individuals given their disposable income. In the case of the fish pond it is vital that people make a choice of the amount of fish to consume. This should be able to leave more fish which would be consumed again in the future. Therefore, in achieving the optimum level of consumption, individuals have to make up prudent choices. In this case the choice made should be uniform for all the people in the society so that no single individual can benefit more than the other. This is so because the fish pond is a public good which must be enjoyed by the people in the society. Hence it accrues equal benefits to all the members of the society.
In conclusion, the resource dilemma occurs in a situation where there exists public good whose benefits are enjoyed by the entire community. In such a case, it becomes difficult for individuals to consume the resource while considering sustainable supply of fish. Thus, it becomes essential for the community to seek expert help to determine the fish population availably possible. Consequently, this would set the maximum amount of fish that individuals can fish from the pond in order to ensure long-lived supply of fish to the people. This would help to meet an optimum or Pareto efficient fishing level for every person without actually depleting the fish stock. The society will also have to make a rational choice on the consumption of the scarce fish in the pond. Therefore, establishing the optimum fishing level helps to solve the resource dilemma that may occur in the society’s fishpond.
