Thursday, January 5, 2012

Synergy of markets and commons

What are the succesful examples where market mechanism is incorporated with the question of commons? What lessons do we learn from such examples (across sectors) for future design of markets?

6 comments:

Mehul Khare said...
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PRATEEK PARIMAL said...
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RAJKAMAL RAWAT said...

Market is a place either real or virtual, where transaction of goods and services took place in exchange of cash or kind. When something is associated with market it is certainly the profit making becomes the motto. Here comes the greed and personal interest to earn more which ultimately lead to exploitation of commons by turning the power dynamics by opportunist and influential people. Even the common people may trade off their long term benefit with short term gains. Well, it may not be always so. Sometime introduction of markets to commons may bring win win situation, but the probability of such event is very less. For that thing to happen it requires a strong effort and clear vision by all the stakeholders.

PRATEEK PARIMAL said...

We can use the market potential of the commons to act as a subsidy for the users of the community involved with it. A very interesting example where market mechanism is incorporated with the commons is that of "Eco-Tourism" and "Rural-Tourism". Particular villages have been earmarked and facilities are being improved to attract tourists for commons like hills, lakes, picnic spots etc present in the village. The revenue generated from these can be divided between the market and the community owning the commons. This has led to the economic as well as social development of the people owning the commons.

Mehul Khare said...

The open source technologies could be a good examples where commons are constantly upgraded and its made available to everyone for the benefit of technology as a whole.
Open source software is very often developed in a public, collaborative manner.The source code is made available to user or developer without any fees .This serves two purposes the penetration of open source tehnology increases.Another very important advantage is the innovation or breakthrough becomes public and then developer community as a wole could start working on next level of innovation, therefore the technology develops fast.
Linux ,MySQL ,Android(Operating system developed by google for smartphones)they are all open source technologies. With the advent of Android market leadership of Symbian(Mobile phone OS of Nokia) has lost a huge market share and thus other competitors such samsung and LG has gained a lot from this. Also a number of applications are available for users thus has resulted in the advancement of technology.

Mehul khare
PRM32

RAJKAMAL RAWAT said...

Market is a place either real or virtual, where transaction of goods and services took place in exchange of cash or kind. When something is associated with market it is certainly the profit making becomes the motto. Here comes the greed and personal interest to earn more which ultimately lead to exploitation of commons by turning the power dynamics by opportunist and influential people. Even the common people may trade off their long term benefit with short term gains. Well, it may not be always so. Sometime introduction of markets to commons may bring win win situation, but the probability of such event is very less. For that thing to happen it requires a strong effort and clear vision by all the stakeholders.
-RAJKAMAL RAWAT