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Spatial externalities and the common-pool resource mechanism

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  • Schnier, Kurt Erik
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    Abstract

    This paper expands the common-pool resource (CPR) game of Walker et al. (1990) to incorporate spatial structure with two spatially linked common-pool resources. Subjects participated in a five-player common-pool resource game under three alternative spatial structures (non-spatial, bi-directional and uni-directional linkages) within the experiment. Results indicate that behavior in the uni-directional CPR game yielded the highest average yields, whereas those in the bi-directional game were lower than in the non-spatial game. Furthermore, investment patterns in the uni-directional game were proportionally lower in the "sink" CPR than those in the "source" CPR. This behavior is consistent with the individual incentives of the game and highlights the importance of understanding the spatial structure present within our natural resources.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

    Volume (Year): 70 (2009)
    Issue (Month): 1-2 (May)
    Pages: 402-415

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    Handle: RePEc:eee:jeborg:v:70:y:2009:i:1-2:p:402-415

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

    Related research

    Keywords: Spatial externalities Spatial CPRs;

    References

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    1. John Hey & Tibor Neugebauer & Abdolkarim Sadrieh, 2009. "An Experimental Analysis of Optimal Renewable Resource Management: The Fishery," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 44(2), pages 263-285, October.
    2. Libecap, Gary D & Wiggins, Steven N, 1984. "Contractual Responses to the Common Pool: Prorationing of Crude Oil Production," American Economic Review, American Economic Association, vol. 74(1), pages 87-98, March.
    3. Walker, James M, et al, 2000. "Collective Choice in the Commons: Experimental Results on Proposed Allocation Rules and Votes," Economic Journal, Royal Economic Society, vol. 110(460), pages 212-34, January.
    4. Mason, Charles F. & Phillips, Owen R., 1997. "Mitigating the Tragedy of the Commons through Cooperation: An Experimental Evaluation," Journal of Environmental Economics and Management, Elsevier, vol. 34(2), pages 148-172, October.
    5. Budescu David V. & Rapoport Amnon & Suleiman Ramzi, 1995. "Common Pool Resource Dilemmas under Uncertainty: Qualitative Tests of Equilibrium Solutions," Games and Economic Behavior, Elsevier, vol. 10(1), pages 171-201, July.
    6. Schnier, Kurt E. & Anderson, Christopher M., 2006. "Decision making in patchy resource environments: Spatial misperception of bioeconomic models," Journal of Economic Behavior & Organization, Elsevier, vol. 61(2), pages 234-254, October.
    7. H. Scott Gordon, 1954. "The Economic Theory of a Common-Property Resource: The Fishery," Journal of Political Economy, University of Chicago Press, vol. 62, pages 124.
    8. Sanchirico, James N. & Wilen, James E., 1999. "Bioeconomics of Spatial Exploitation in a Patchy Environment," Journal of Environmental Economics and Management, Elsevier, vol. 37(2), pages 129-150, March.
    9. Claudia Keser & Roy Gardner, 1999. "Strategic behavior of experienced subjects in a common pool resource game," International Journal of Game Theory, Springer, vol. 28(2), pages 241-252.
    10. Sanchirico, James N. & Wilen, James E., 2005. "Optimal spatial management of renewable resources: matching policy scope to ecosystem scale," Journal of Environmental Economics and Management, Elsevier, vol. 50(1), pages 23-46, July.
    11. Budescu, David V. & Suleiman, Ramzi & Rapoport, Amnon, 1995. "Positional Order and Group Size Effects in Resource Dilemmas with Uncertain Resources," Organizational Behavior and Human Decision Processes, Elsevier, vol. 61(3), pages 225-238, March.
    12. Walker, James M & Gardner, Roy, 1992. "Probabilistic Destruction of Common-Pool Resources: Experimental Evidence," Economic Journal, Royal Economic Society, vol. 102(414), pages 1149-61, September.
    13. Hackett Steven & Schlager Edella & Walker James, 1994. "The Role of Communication in Resolving Commons Dilemmas: Experimental Evidence with Heterogeneous Appropriators," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 99-126, September.
    14. Erling Moxnes, 1998. "Not Only the Tragedy of the Commons: Misperceptions of Bioeconomics," Management Science, INFORMS, vol. 44(9), pages 1234-1248, September.
    15. Moxnes, Erling, 1998. "Overexploitation of renewable resources: The role of misperceptions," Journal of Economic Behavior & Organization, Elsevier, vol. 37(1), pages 107-127, September.
    16. Walker, James M. & Gardner, Roy & Ostrom, Elinor, 1990. "Rent dissipation in a limited-access common-pool resource: Experimental evidence," Journal of Environmental Economics and Management, Elsevier, vol. 19(3), pages 203-211, November.
    17. Pamela Schmitt & Kurtis Swope & James Walker, 2000. "Collective Action with Incomplete Commitment: Experimental Evidence," Southern Economic Journal, Southern Economic Association, vol. 66(4), pages 829-854, April.
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    Cited by:
    1. Cherry, Todd L. & Cotten, Stephen J. & Jones, Luke R., 2013. "The appropriation of endogenously provided common-pool resources," Resource and Energy Economics, Elsevier, vol. 35(3), pages 329-341.
    2. Galinato, Gregmar I., 2011. "Endogenous property rights regimes, common-pool resources and trade," Ecological Economics, Elsevier, vol. 70(5), pages 951-962, March.

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