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Coping with the Tragedy of the Commons: Game Structure and Design of Rules

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  • Nicolas Faysse
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    Abstract

    The paper provides an assessment of some recent results of the large amount of New Institutional Economics analyses investigating a common-pool resource setting, with a specific focus on game theory models. Most of the studies have used a noncooperative approach in order to explain how under-provision for the resource or its over-use - the so-called Tragedy of the Commons - can be avoided, within given management rules. They show how the characteristics of the game (payoff matrix, repetition) or of the users (group size, wealth, heterogeneity and moral norms) may give incentives for the latter to play in a way that benefits all users. By contrast, much fewer articles have used a formalized approach to assess the possibility for players to design new rules to overcome the initial Tragedy of the Commons. The article ends with some proposals of directions for future research. Copyright Blackwell Publishers Ltd, 2005.

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Journal of Economic Surveys.

    Volume (Year): 19 (2005)
    Issue (Month): 2 (04)
    Pages: 239-261

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    Handle: RePEc:bla:jecsur:v:19:y:2005:i:2:p:239-261

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    Cited by:
    1. Espínola-Arredondo, Ana & Muñoz-García, Félix, 2011. "Can incomplete information lead to under-exploitation in the commons?," Journal of Environmental Economics and Management, Elsevier, vol. 62(3), pages 402-413.
    2. Ana Paula Martins, 2012. "Calls and Couples: Communication, Connections, Joint-Consumption and Transfer Prices," Annals of Economics and Finance, Society for AEF, vol. 13(2), pages 237-281, November.
    3. Ringa Raudla, 2010. "Governing budgetary commons: what can we learn from Elinor Ostrom?," European Journal of Law and Economics, Springer, vol. 30(3), pages 201-221, December.
    4. Bodo Sturm & Joachim Weimann, 2006. "Experiments in Environmental Economics and Some Close Relatives," Journal of Economic Surveys, Wiley Blackwell, vol. 20(3), pages 419-457, 07.
    5. G.Ananda Vadivelu, 2011. "Evolution of Property Rights Regimes in the Groundwater Economy of India-Constraints on Moving Towards a Common Property Regime," Working Papers id:4432, eSocialSciences.
    6. Sawada, Yasuyuki & Kasahara, Ryuji & Aoyagi, Keitaro & Shoji, Masahiro & Ueyama, Mika, 2012. "Modes of Collective Action in Village Economies: Evidence from Natural and Artefactual Field Experiments in a Developing Country," Working Papers 47, JICA Research Institute.

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