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Identities in the Commons: The Dynamics of Norms and Social Capital

Author

Listed:
  • Bulte Erwin

    (Wageningen University & Tilburg University)

  • Horan Richard D.

    (Michigan State University)

Abstract

This paper provides a formal analysis of the evolution of cooperation in the management of common property resources. We develop a dynamic model that includes moral norms or a sense of 'identity,' and show that cooperation may - but need not - be an equilibrium outcome in the absence of intervention by a managing agency or punishment by peers. We demonstrate that outside intervention has ambiguous effects when identity matters - it may reduce welfare of the agents harvesting the stock.

Suggested Citation

  • Bulte Erwin & Horan Richard D., 2010. "Identities in the Commons: The Dynamics of Norms and Social Capital," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-35, February.
    • Handle: RePEc:bpj:bejeap:v:10:y:2010:i:1:n:13
    DOI: 10.2202/1935-1682.2372
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    2. Calfucura, Enrique, 2018. "Governance, Land and Distribution: A Discussion on the Political Economy of Community-Based Conservation," Ecological Economics, Elsevier, vol. 145(C), pages 18-26.
    3. Benito-Ostolaza, J.M. & Ezcurra, R. & Osés-Eraso, N., 2014. "Negative externalities in cropping decisions: Private versus common land," Ecological Economics, Elsevier, vol. 105(C), pages 185-192.
    4. Richter, Andries & van Soest, Daan & Grasman, Johan, 2013. "Contagious cooperation, temptation, and ecosystem collapse," Journal of Environmental Economics and Management, Elsevier, vol. 66(1), pages 141-158.
    5. Richter, Andries & Grasman, Johan, 2013. "The transmission of sustainable harvesting norms when agents are conditionally cooperative," Ecological Economics, Elsevier, vol. 93(C), pages 202-209.
    6. Schaap, Robbert & Richter, Andries, 2019. "Overcapitalization and social norms of cooperation in a small-scale fishery," Ecological Economics, Elsevier, vol. 166(C), pages 1-1.
    7. Nøstbakken, Linda, 2013. "Formal and informal quota enforcement," Resource and Energy Economics, Elsevier, vol. 35(2), pages 191-215.

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