Fence the pasture into separate lots for each herdsman. Each herdsman now gains the benefit of each new animal, but also pays full price in potential overgrazing. It is to the advantage of each herdsman to maintain a herd consistent with the carrying capacity of the land. In some cases it is not possible to build a fence. Ocean fisheries can be over harvested.
Pollution can enter the air or streams imposing costs on others.
Market failures occur when the costs and burdens are placed on others without a voluntary transaction taking place. The solution to the problem generally lies in government application of market mechanisms. For example, applying effluent charges on pollution forces the polluters to bear the cost of pollution impose on others. Taxing fish catches can act as a feedback mechanism preventing over exploitation. However, an interesting problem arises as governments and societies become more socialized.