Introduction to Tragedy of the CommonsIneconomics, the ‘tragedy of the commons’ is the depletion of a sharedresource by individuals, acting independently and rationally accordingto each one’s self-interest, despite their understanding that depletingthe common resource is contrary to their long-term best interests. Inthis course, we use the term as it relates to environmental issues andsustainability. The commons dilemma stands as a model for a greatvariety of resource problems in society today, such as water, land,fish, and non-renewable energy sources such as oil and coal.Situationsexemplifying the ‘tragedy of the commons’ include the unrestrictedpollution of rivers and streams, uncontrolled industrial air emissions,overfishing and destruction of the Grand Banks, and the destruction ofsalmon runs on in the Pacific Northwest due to damming.Readings: Porter: “Creating Shared Value”, Case No. R1101C. Is monetizing ecosystem services essential for sustainability? (A Primer on Sustainability, Chapter 3) Presentation: The Tragedy of the Commons Podcast: Podcast Transcript Week 2 Assignment 1: Identify Market Failure In a 1-to-2-paragraph response, describe and identify amarket failure in the following areas: energy, food, health care, or theenvironment and explain why the failure occurred.