In economics, what is the meaning of the phrase 'the tragedy of the commons? ' in market economies products are often similar and common, so the government must actively attempt to create variety in goods and services. in decisions involving intellectual property rights, policy-makers must compromise in order to reach common ground among competing interest groups. people will overuse or misuse a common resource that is not excludable but is rivalrous. it serves the common good to produce items that are neither rivalrous nor excludable, but profit‑maximizing firms will not produce such products. goods that are not rivalrous but are excludable are under‐produced by private markets, often with consequences that reduce social welfare.