Elinor Ostrom recently became the first woman to win the prestigious “fake” Nobel prize for Economics, for her research on how self-governing groups successfully share resources. She spent years refuting the idea of the Tragedy of the Commons—a thought experiment dating from 1968 that basically said anything shared would get spoiled because people would only value something they owned. The man who authored the idea, Garrett Hardin, presumably observed very unruly preschoolers.
Ostrom actually looked at how people share finite resources like forests and grazing land, and found that with the right ground rules people not only did fine, they did better than companies and governments. Yipee for her and all, but why am I telling you about it in a column about digital rights and IP?
Turns out Ostrom laid the groundwork for thinking about the commons, including our very own digital commons. Her work also shows in economically solid terms how and why total monopoly rights, like copyright and patent, might not always be the best for society. Ostrom showed that, when a commons can manage itself, the proximity of the users and the governance, i.e., the two being the same thing, makes the system work more efficiently than either centralized government or strong property rights.
Continue reading after the jump.