Prize Lecture by Elinor Ostrom
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412 levels of technical efficiency (ibid.: 290). technical efficiency was also en- hanced in those metropolitan areas with a small number of producers pro- viding indirect services such as radio communication and criminal laboratory analyses. We were able to reject the theory underlying the proposals of the metropolitan reform approach. We demonstrated that complexity is not the same as chaos in regard to metropolitan governance. that lesson has carried forth as we have undertaken further empirical studies of polycentric gover- nance of resource and infrastructure systems across the world (andersson and ostrom 2008; e. ostrom, schroeder, and Wynne 1993). B. Doubling the Types of Goods studying how individuals cope with diverse public problems in the world led us to reject samuelson’s two-fold classification of goods. Buchanan (1965) had already added a third type of good, which he called “club goods.” in relation to these kinds of goods, it was feasible for groups of individuals to create private associations (clubs) to provide themselves nonrivalrous but small-scale goods and services that they could enjoy while excluding nonmembers from participation and consumption of benefits. in light of further empirical and theoretical research, we proposed additional modifications to the classification of goods to identify fundamental differences that affect the incentives facing individuals (v. ostrom and e. ostrom 1977). 1. replacing the term “rivalry of consumption” with “subtractability of use.” 2. conceptualizing subtractability of use and excludability to vary from low to high rather than characterizing them as either present or ab- sent. 3. overtly adding a very important fourth type of good – common-pool resources – that shares the attribute of subtractability with private goods and difficulty of exclusion with public goods (v. ostrom and e. ostrom 1977). forests, water systems, fisheries, and the global atmos-- phere are all common-pool resources of immense importance for the survival of humans on this earth. 4. changing the name of a “club” good to a “toll” good, since many goods that share these characteristics are provided by small-scale public as well as private associations. figure 1 provides an overview of four broad types of goods that differenti- ally affect the problems individuals face in devising institutions to enable them to provide, produce, and consume diverse goods. these four broad types of goods contain many subtypes of goods that vary substantially in regard to many attributes. for example, a river and a forest are both common- pool resources. they differ substantially, however, in regard to the mobility of the resource units produced, the ease of measurement, the time scale for regeneration, and other attributes. specific common-pool resources also differ in regard to spatial extent, number of users, and many other factors.
413 subtractability of Use high low
difficulty of excluding Potential Beneficiaries high common-pool resources: groundwater basins, lakes, irrigation systems, fisheries, forests, etc. Public goods: peace and security of a community, national defense, knowledge, fire protection, weather forecasts, etc. low
Private goods: food, clothing, automobiles, etc. toll goods: theaters, private clubs, daycare centers Figure 1. four types of goods. source: adapted from e. ostrom, 2005: 24. When one engages in substantial fieldwork, one confronts an immense diversity of situations in which humans interact. riding as an observer in a patrol car in the central district of a large american city at midnight on a saturday evening, one sees different patterns of human interaction than in a suburb on a weekday afternoon when school is letting out. in both cases, one observes the production of a public good – local safety – by an official of a local government. others who are involved in each situation differ in regard to age, sobriety, why they are there, and what they are trying to accomplish. and this context affects the strategies of the police officer one is observing. contrast observing the production of a public good to watching private water companies, city utilities, private oil companies, and local citizens meeting in diverse settings to assess who is to blame for overdrafting their groundwater basin, causing massive saltwater intrusion, and what to do next. these individuals all face the same problem – the overdraft of a common- pool resource – but their behavior differs substantially when they meet monthly in a private water association, when they face each other in a court- room, and when they go to the legislature and eventually to the citizens to sponsor a special replenishment district. these and many other situations observed in irrigation systems and forests in multiple countries do not closely resemble the standard models of a market or a hierarchy. 3. develoPinG a fraMeWork for analyZinG the diversity of hUMan sitUations the complexity and diversity of the field settings we have studied has generat- ed an extended effort by colleagues associated with the Workshop in Political theory and Policy analysis (the Workshop) to develop the iad framework (v. ostrom 1975; kiser and ostrom 1982; McGinnis 1999a, b, 2000; e. ostrom 1986, 2005). the framework contains a nested set of building blocks that social scientists can use in efforts to understand human interactions and out- comes across diverse settings. the iad builds on earlier work on transactions (commons [1924] 1968), logic of the situation (Popper 1961), collective struc-
1977). the approach also draws inspiration from the work of koestler (1973) and simon (1981, 1995), who both challenged the assumption
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