National parks and game reserves are under threat from exploitation by tourists and by people living on their borders. Parks, although highly valued by conservationists, are not protected from unregulated economic behaviour within and outside their borders. This study argues that parks and reserves are worth preserving, analyzes the problem, and advocates solutions drawing on a wide range of sources. Issues discussed include the effects of economic activity on a national park, the tourist problem, valuing a national park and the use of cost-benefit decision-making. The author uses economic analysis to explore institutional arrangements which would compensate for externalities which result from exploitation and over-use by tourists and local communities. The price mechanism, he argues, is not a satisfactory tool with which to protect areas of rich bio-diversity. Ranthambhore National Park in India is used throughout to illustrate the arguments featured in this volume.