Final answer:
The 'Tragedy of the Commons' refers to the overuse of shared resources due to individual self-interest, with traditional solutions often involving government intervention through regulation and privatization, although alternate community-based approaches have proven successful in some cases.
Step-by-step explanation:
The statement 'The "Tragedy of the Commons" calls for a solution to the commons through "Mutually agreed upon coercion"' is true. The Tragedy of the Commons explains that when individuals act according to their own self-interest regarding a shared resource, they behave contrary to the whole group's long-term best interests by depleting the resource. Elinor Ostrom's research suggested that local communities could effectively manage common resources without external enforcement or privatization, but traditionally, two main solutions to this problem involve governmental intervention: a centralized authority exercising control with potential coercion, and privatization of the commons.
Governmental solutions can include regulatory laws to prevent overuse, as with the limited number of fishing permits to prevent the extinction of certain species, and the establishment of property rights. Alternatively, privatization ensures that those using the resource bear the cost of its exploitation, thereby incentivizing conservation. Ostrom's work contrasted this by showing successful communal resource management based on cooperation among users, especially when they are closely connected to the resource.