Central feature of commons is its position as a midway between 'Open access'and 'Closed access'. How does market logic conflicts with the logic of the commons?
Market is driven by the logic of profit maximization, capital is guide of markets and labour is driven by owners of capital. Market usually has a temptation to overexploit and keep sustainability on a back burner. Market tends to favour the rich and adversely impact the poor. The commons are driven by a mechanism of proportionate appropriation of benefits and costs. Resource characteristics like scarcity and uncertainty associated with outcomes necessitate collective action which emerge with ease in a less stratified society. But there always exists a possibility of utilising market mechanism in management of commons. Avinash Kumar(32059)
As far as market is concerned, it is governed by the logic of demand and supply – an equilibrium price is set where demand equals supply. And as resources are limited and all are priced, the utilisation is better, unlike for commons where there is supply, as everyone wants to make most out of it, but no one ensures that supply does not get affected due to over-exploitation of resources. And, as there are no checks and balances, there is excess waste and deterioration of the common property. - Ankush khanna
Common properties have a well defined geographical boundary, users, benefit appropriation and cost sharing, provision of graduated sanctions and nested rules. Commons have provisions of excludability and subtract ability and hence they differ from open access. Commons provide members usage right and quotas. The members in commons impose negative externality upon other members. A member in common cannot prevent other members from using common and there are limitations on transfer of ownership. Markets are driven by maximisation of returns denies idea of distributive justice. Capitalists drive production for making maximum profits. Prerna Gupta (p32030)
5 comments:
Market is driven by the logic of profit maximization, capital is guide of markets and labour is driven by owners of capital. Market usually has a temptation to overexploit and keep sustainability on a back burner. Market tends to favour the rich and adversely impact the poor. The commons are driven by a mechanism of proportionate appropriation of benefits and costs. Resource characteristics like scarcity and uncertainty associated with outcomes necessitate collective action which emerge with ease in a less stratified society. But there always exists a possibility of utilising market mechanism in management of commons.
Avinash Kumar(32059)
As far as market is concerned, it is governed by the logic of demand and supply – an equilibrium price is set where demand equals supply. And as resources are limited and all are priced, the utilisation is better, unlike for commons where there is supply, as everyone wants to make most out of it, but no one ensures that supply does not get affected due to over-exploitation of resources. And, as there are no checks and balances, there is excess waste and deterioration of the common property.
- Ankush khanna
Common properties have a well defined geographical boundary, users, benefit appropriation and cost sharing, provision of graduated sanctions and nested rules. Commons have provisions of excludability and subtract ability and hence they differ from open access. Commons provide members usage right and quotas. The members in commons impose negative externality upon other members. A member in common cannot prevent other members from using common and there are limitations on transfer of ownership. Markets are driven by maximisation of returns denies idea of distributive justice. Capitalists drive production for making maximum profits.
Prerna Gupta (p32030)
Post a Comment