Common Pool

A resource or asset that is jointly managed or accessed by a group rather than by an individual. Something that is considered to be part of a common pool is exploited by a group as a whole, but with the benefit passing to the individual and the cost spreading across the group. An asset considered to be common pool can be public, such as a river or forest, or private, such as money raised by a group to purchase an investment.

Assets and resources considered to be part of a common pool present a complicated problem. Members of the group benefit from the resource individually but bear costs collectively. A common pool resource, such as a river, may be used both to cool a manufacturing plant and by cities for drinking water. Both the manufacturing plant and the city benefits from the river jointly, but if the plant dumps pollution into the river it cannot be used by the city for drinking water. Common pool items are typically regulated in order to reduce the possibility of a tragedy of the commons situation.


Investment dictionary. . 2012.

Look at other dictionaries:

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  • common pool resource — a natural resource (e.g. a fishery) that is difficult to divide up or control such that the take by one person affects that of another …   Dictionary of ichthyology

  • Common Pool Problem — Allokationsproblem bei der Nutzung einer dem gemeinsamen Zugriff mehrerer Entscheidungsträger ausgesetzten Ressource (⇡ Allmenderessource) …   Lexikon der Economics

  • Common Pool Resource — ⇡ Allmenderessource …   Lexikon der Economics

  • pool — {{Roman}}I.{{/Roman}} noun 1 swimming pool, etc. ADJECTIVE ▪ bathing, paddling (BrE), swimming, wading (AmE) ▪ big ▪ little, small …   Collocations dictionary

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  • Common good (economics) — For the philosophical term, see common good. For other uses, see Common Good (disambiguation). Common goods are defined in economics as goods which are rivalrous and non excludable. Thus, they constitute one of the four main types of the most… …   Wikipedia

  • pool — I. noun Etymology: Middle English, from Old English pōl; akin to Old High German pfuol pool Date: before 12th century 1. a. (1) a small and rather deep body of usually fresh water (2) a quiet place in a stream (3) a body of water forming above a… …   New Collegiate Dictionary

  • pool — pool1 W2S2 [pu:l] n ▬▬▬▬▬▬▬ 1¦(for swimming)¦ 2¦(area of water)¦ 3 pool of water/blood/light etc 4¦(game)¦ 5¦(group of people)¦ 6¦(shared money/things)¦ 7 the pools 8¦(sports)¦ ▬▬▬▬▬▬▬ [Sense: 1 3; Origin …   Dictionary of contemporary English

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