Common Pool Resource Vs Public Good. In economics a common pool resource cpr is a type of good consisting of a natural or human made resource system e g. These resources such as water can be when in its natural state are known as common pool resources.
A decentralized group of. The main difference is their rivalry property. Public goods are things which can be used by the masses without diminishing their value such as street signs and clean air.
Discriminating common from public goods is a vital step in the development of covenants and institutions by stakeholders who depend on specific common goods for their livelihood and welfare.
These resources such as water can be when in its natural state are known as common pool resources. The overuse of common pool water resources occurs because each user withdraws the amount of water they require without fully taking into account the impact this has on the amount of water available to other users. This gives rise to a problem called the tragedy of the commons. The main difference is their rivalry property.
