This chapter examines several collective action problems, such as the tragedy of the commons, the stag hunt, and the example of fish stocks. All these examples show the problems that arise when individual self-interest conflicts with collective efforts, and why collective action tends to fail, even taking into consideration enlightened self-interest. There is a solution to making sure everyone cooperates. Explain what this solution is and give at least one example of how it resolves a collective action problem.

What will be an ideal response?

Ans: According to the author, the solution to collective action issues is government regulation. A tragedy of the commons is created when individuals overexploit the shared resource. Thus, creating a fear of punishment for overexploitation will provide a solution to the issue.