What happens when individuals pursue self-interest in shared resources?

When individuals pursue self-interest in shared resources, it can lead to depletion of those resources, often referred to as the "tragedy of the commons." This phenomenon occurs when individuals, acting independently according to their own self-interest, utilize a common resource to the point where it becomes overexploited. Each individual seeks to maximize their own benefits without regard for the overall impact on the resource, ultimately leading to exhaustion or degradation.

For example, in a scenario where multiple farmers share a pasture for grazing their livestock, if each farmer decides to let more animals graze to maximize their own output, the pasture can quickly become overgrazed, leading to diminished grass cover and soil degradation. This depletion not only affects the current users but can also have long-term negative consequences for all users who depend on that resource.

The other options focus on potential positive outcomes, such as efficiency or fair distribution, which generally do not occur as a result of self-interested behavior in a shared resource context. When individuals prioritize their own goals without cooperative management or regulation, the common resource often suffers, leading to negative outcomes for the community as a whole.