Incentives

In the Market for Black Rhinos, no one has rights over the existing Rhinos. Therefore, there is no incentive for people to keep up the supply of Rhinos by breeding them because someone else will just kill them and keep all the profits. People will therefore kill Rhinos without breeding them, resulting in a decreased population of Rhinos. As the Rhino population decreases, the supply of there horns goes down, and their respective value goes up, thus increasing the incentive for people to kill even more Rhinos. This market is different than other markets because no one has property rights over the Rhinos. In normal markets, people will keep up the supply so that they can continue to produce goods in the future. This creates a stable system in which there is always a supply from which to create goods. This is not the case with the black Rhino, and so the population of Rhinos is steadily decreasing.