Many students will pause for a moment or two, thinking they should wait for the second minute, but soon, they will probably rush to grab the paper clips and to trade them in for candy. Ask students why they didn t leave some of the paper clips on the floor and save some for the second round and for the higher returns. Now draw 6-8 territories on the paper with a marking pen. Assign each student the ownership of a particular section. Play the 2 rounds and award students for the paperclips.
Economists refer to the first situation as the tragedy of the commons.
Explain what is meant by this. Because everyone could use the common land, shepherds in England used common land rather than their own land for grazing. The grass died. The key to understanding the tragedy of the commons is to remember that people are more likely to take better care of things they own than things that someone else or noone else owns. Private ownership creates incentives that reward the wise use of property and the conservation of resources for use in the future.