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The combination of two tragedies: commons and anticommons tragedies

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  • Chia-Hung Sun

    (Soochow University)

  • Chorng-Jian Liu

    (National Taipei University)

Abstract

Under a general constant elasticity of substitution (CES) function, this paper generalizes the substitution of concurrent possession of a property right—from perfect substitutes to partial substitutes to perfect complements—in the context of commons/anticommons tragedies. We demonstrate that when the possibility of substitution between property rights is relatively low, inefficiency arises in the underusage of a common resource (i.e. anticommons tragedy). When the possibility of substitution between property rights is relatively high, inefficiency arises in the overusage of a common resource (i.e. commons tragedy). When the possibility of substitution between property rights is moderate, the two tragedies (commons and anticommons) are combined and may achieve efficient usage of a common resource, which is the notion of two negatives making a positive.

Suggested Citation

  • Chia-Hung Sun & Chorng-Jian Liu, 2017. "The combination of two tragedies: commons and anticommons tragedies," Journal of Economics, Springer, vol. 122(1), pages 29-43, September.
    • Handle: RePEc:kap:jeczfn:v:122:y:2017:i:1:d:10.1007_s00712-017-0534-8
    DOI: 10.1007/s00712-017-0534-8
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    References listed on IDEAS

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    Cited by:

    1. Michele Bisceglia, 2020. "Optimal taxation in a common resource oligopoly game," Journal of Economics, Springer, vol. 129(1), pages 1-31, January.

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    More about this item

    Keywords

    Duopoly; Complementary monopoly; Commons; Anticommons; Cournot;
    All these keywords.

    JEL classification:

    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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