Micro Foundations · intermediate

Cheap sonar makes every boat more effective

What moves on the Tragedy of the Commons diagram

Average catchshifts right (small)

Better technology shifts the average catch curve out, but open-access entry absorbs the whole gain, leaving profits at zero again with a harder-hit stock.

Watch it animate Quiz yourself on Tragedy of the Commons

Step by step

1
Each boat installs cheap sonar and can find fish it used to miss.
2
The catch per boat rises at any fleet size: the average catch curve shifts out.
3
But under open access, a better catch just invites MORE boats.
4
Entry continues until the average catch again barely covers costs. The technology gain is dissipated by the commons problem.

Where this shows up

Examiners ask this as: sonar, fishing technology, better boats, fish finder, efficient fishing gear.

Other scenarios on Tragedy of the Commons

Government introduces fishing licence fees →Years of overfishing halve the stock →