In surfing, the key problem is that waves are a scarce resource. The better the surf spot, the more crowded and competitive it is. So how have surfers worked out ways to distribute these scarce resources with minimal government interference? There are three principles at play in the allocation of surfing’s scarce waves. Each principle provides a check and balance against the other two. And yet none of these principles were built into the sport, like the rules of golf. These principles simply evolved.