What is an example of the importance of ownership in providing incentives?

Farmers packing rotten fruits along with fresh fruits. Farmers selling their fruits to the highest bidder. Farmers collaborating with each other for higher yields. Farmers investing in modern machinery for efficient farming.

Farmers packing rotten fruits along with fresh fruits.

Option 1 illustrates the importance of ownership by describing the carelessness with which farmers in the former Soviet Union used to pack fruits for sale. Since they did not own the land, they neither enjoyed the profits nor suffered the losses, leading to a lack of incentive for efficiency.