Ostrom claims that "all efforts to organize collective action, whether by an external ruler, an entrepreneur, or a set of principals who wish to gain collective benefits, must address a common set of problems." These problems are "coping with free-riding, solving commitment problems, arranging for the supply of new institutions, and monitoring individual compliance with sets of rules." Ostrom found that groups that are able to organize and govern their behavior successfully are marked by the following design principles:

1. Group boundaries are clearly defined.
2. Rules governing the use of collective goods are well matched to local needs and conditions.
3. Most individuals affected by these rules can participate in modifying the rules.
4. The rights of community members to devise their own rules is respected by external authorities.
5. A system for monitoring member's behavior exists; the community members themselves undertake this monitoring.
6. A graduated system of sanctions is used.
7. Community members have access to low-cost conflict resolution mechanisms.
8. For CPRs (Community & Public Resources) that are parts of larger systems: appropriation, provision, monitoring, enforcement, conflict resolution, and governance activities are organized in multiple layers of nested enterprises.

The bottom line: groups that learn to solve complex collective action dilemmas can harness more resources and create a larger pool of wealth, spread more widely, than groups that fail.