New study reveals dark side of communal resources, warns of exploitation
The article discusses common property resources (CPRs) and how economic theory can help understand them better. It explains how communitarian institutions around CPRs can work well under certain conditions but may also lead to exploitation. Recent evidence shows that CPRs can be fragile, and privatization may be a viable option in some cases. The theory highlights the importance of trust and credibility in these institutions and explores the incentives for parties to keep their promises.