FOCUS: LOGICAL FALLACIES

ECONOMICS: The Tragedy of the Commons

The Fallacy of Composition• The logical fallacy of arguing that – what is true for the parts – is also true for the whole.

• In the study of economics, this takes the form of assuming that – what works for parts of the economy, such as

households or businesses, – also works for the aggregate, or macroeconomy.

• The contrasting fallacy is the fallacy of division.

The Fallacy of Division

• The logical fallacy of arguing that – what is true for the whole – is also true for the parts.

• In the study of economics, this takes the form of assuming that – what works for the aggregate, or macroeconomy,– also works for parts of the economy, such as

households or businesses. • The contrasting fallacy is the fallacy of

composition.

The Tragedy of the Commons

• THE TRAGEDY OF THE BUNNIES• http://www.bunnygame.org/

• THE TRAGEDY OF THE COMMONS GAME• http://www.uoregon.edu/~rmitchel/common

s/index.htm