The tradeoff of the commons
AbstractWe develop a model of scarce, renewable resources to study the commons problem. We show that, contrary to conventional wisdom, property rights can often be less efficient than a commons. In particular, we study two effects: (1) waste which arises when individuals expend resources to use a resource unavailable due to congestion and (2) the risk of underutilization of the resource. We provide necessary and sufficient conditions for each effect to dominate the other when the cost of determining the availability of a resource is low.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Public Economics.
Volume (Year): 96 (2012)
Issue (Month): 3 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/505578
Tragedy of the commons; Office hours; Appointments; Property rights; Reservations;
Other versions of this item:
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- D45 - Microeconomics - - Market Structure and Pricing - - - Rationing; Licensing
- K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Property rights and the tragedy of the commons
by Economic Logician in Economic Logic on 2010-12-15 15:19:00
- Chakravarty, Surajeet & Kaplan, Todd R., 2006.
"Optimal Allocation without Transfer Payments,"
18481, University Library of Munich, Germany, revised 02 Mar 2009.
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