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Asymmetric information may protect the commons: The welfare benefits of uninformed regulators

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  • Espínola-Arredondo, Ana
  • Muñoz-García, Félix

Abstract

We examine an entry-deterrence model in the commons. We investigate in which contexts asymmetric information among firms becomes welfare improving, and in which settings an uninformed regulator may prefer to assess and disseminate information about the available stock among firms.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 121 (2013)
Issue (Month): 3 ()
Pages: 463-467

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Handle: RePEc:eee:ecolet:v:121:y:2013:i:3:p:463-467

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Web page: http://www.elsevier.com/locate/ecolet

Related research

Keywords: Entry deterrence; Signaling; Commons; Welfare;

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  1. Nicolas Faysse, 2005. "Coping with the Tragedy of the Commons: Game Structure and Design of Rules," Journal of Economic Surveys, Wiley Blackwell, vol. 19(2), pages 239-261, 04.
  2. Charles F. Manson & Stephen Polasky, 1993. "Entry Deterrence In The Commons," Boston College Working Papers in Economics 209, Boston College Department of Economics.
  3. Polasky, Stephen & Bin, Okmyung, 2001. "Entry Deterrence and Signaling in a Nonrenewable Resource Model," Journal of Environmental Economics and Management, Elsevier, vol. 42(3), pages 235-256, November.
  4. Jérémy Laurent-Lucchetti & Justin Leroux & Bernard Sinclair-Desgagné, 2011. "Splitting an Uncertain (Natural) Capital," Cahiers de recherche 1105, CIRPEE.
  5. Ana Espinola-Arredondo & Felix Munoz-Garcia, 2010. "Can Incomplete Information Lead to Under-exploitation in the Commons," Working Papers 2010-04, School of Economic Sciences, Washington State University.
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