00:01
Alright, we're gonna be defining all these terms, so let's start with tragedy of the commons.
00:04
This is a situation in which individuals with access to a public resource, also known as a common, act in their own interest and in doing so ultimately deplete the resource.
00:13
So, individuals with access to public resource, they act in their own interest and eventually deplete the resource, so it harms society overall.
00:40
And then they can't get it anymore either.
00:43
So, selfishness never leads to anything good, essentially is what it's saying.
00:48
Collective action problem cap.
00:50
This is a situation in which all individuals would be better off cooperating but fail to do so because of conflicting interests between individuals that discourage joint action.
00:57
So, essentially can't get along enough to do something that would benefit all of them in the end.
01:32
Three, utility maximizer, utility maximization.
01:36
This is a strategic scheme whereby individuals and companies seek to achieve the highest level of satisfaction from their economic decisions.
01:42
So, social contract.
02:16
This is an implicit agreement among members of a society to cooperate for social benefits.
02:21
Example, you sacrifice some of your individual freedom for state protection...