ABSTRACT
Throughout the world, both within national economies and on the high seas, there are important resources that are not owned by anyone. In almost all cases the exploitation of these unowned resources is on a basis of competitive withdrawal: a basis which differentiates the usage of common property (or, more properly, open access) resources from that of private property in general. 1 Both classical and neoclassical economists have noted, and in some cases discussed at length, this distinction. In the debate over “empty economic boxes” in the early 1920’s, Frank H. Knight clearly specified the issues involved. 2
The statement does in fact indicate what would happen if no one owned the superior farm. But under private appropriation and self-seeking exploitation of the land the course of events is very different. It is in fact the social function of ownership to prevent this excessive investment in superior situations. 3
