We all know the story… there is some free lunch there & then.
Well, and then it’s gone.
The tragedy of the commons is a principle grounded in social science with economic implications. This is where a shared resource tends to be exploited by individuals acting in their own self-interest.
The common economic example given is where grazing land to be shared by the public is overused & destroyed by individuals.
Is the internet coming to a tragedy of the commons scenario. In 2018, 300 hours of content are uploaded to Youtube every minute!
Every Tom, Dick, Logan, & Paul are posting content of them along with their cat up. It’s not just YouTube. There is content being uploaded everywhere, all the time.
It’s not really a tragedy of the commons. The online environment is much more comparable to the four types of economic competition.
Perfect Competition
Any profit to be had here is quickly evaporated by an influx of entrants to the market. Take your typical Youtube uploader.
- Imperfect Competition
Similar to perfect competition but extra profit is generated here by establishing unique differences. Instagram models? Maybe a unique style or perspective on something in the blogging world?
- Oligopoly
Market is controlled by big players, & it is also important how these big players interact with each other. For this one, you could think of the biggest online research consultants in certain areas. If one undercuts the market, this will have an effect on the rest so things such as game theory and strategies come into play.
- Monopoly
One entity controls market. In a strict economic defintion sense, in a monopoly, no other entrants can come to the market. But for an online example, let’s use Facebook. Of course, other social media players can enter the market but Facebook has such powerful network economics that it would be near impossible to compete with.
Let me know your thoughts. Have you had any experiences like this online or work in a digital industry which can compare? Do you think these economic principles relate in this general way or does the online environment follow a ruleset of it’s own.