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Preferences for government enforcement of a common pool harvest quota: Theory and experimental evidence from fishing communities in Colombia

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Author Info

  • Maria Alejandra Velez

    ()
    (School of Management, Universidad de los Andes)

  • John K. Stranlund

    ()
    (Department of Resource Economics, University of Massachusetts Amherst)

  • James J. Murphy

    ()
    (Department of Economics, University of Alaska Anchorage)

Abstract

We examine individual harvesters’ preferences for government enforcement of a quota imposed on the exploitation of a common pool resource. We develop a model of Nash behavior by identical risk neutral harvesters to explain individual equilibrium preferences for enforcement of an efficient harvest quota. If the quota is not enforced well, we demonstrate that individual harvesters will always prefer increased enforcement—either increased monitoring or increased penalties—of the quota. We conduct a test of this theoretical result with data from framed common pool resource experiments conducted in artisanal fishing communities in three regions of Colombia. Subjects were given the opportunity to express their preferences for enforcement by voting on two levels of enforcement of a harvest quota, with and without communication. The two enforcement strategies involved the same probability that the government would audit individual harvesters, but differed in the level of the penalty for noncompliance. Contrary to theory, individuals voted for the lower inefficient penalty about 80% of the time and groups implemented this weaker enforcement strategy over 90% of the time. Giving subjects the opportunity to vote on the enforcement strategy did not lead to more efficient harvests, nor did allowing subjects to communicate before voting.

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File URL: http://www.econpapers.uaa.alaska.edu/RePEC/ala/wpaper/ALA201202.pdf
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Bibliographic Info

Paper provided by University of Alaska Anchorage, Department of Economics in its series Working Papers with number 2012-02.

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Date of creation: Feb 2012
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Publication status: Published in Ecological Economics, 77(May):185-192.
Handle: RePEc:ala:wpaper:2012-02

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Web page: http://www.cbpp.uaa.alaska.edu/CBPPHome/DepartmentsandMajors/Economics.aspx
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Keywords: common pool resources; field experiments; institutions; communication; regulation; voting;

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References

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  1. Maria Alejandra Vélez & John K. Stranlund & James J. Murphy, 2005. "What Motivates Common Pool Resource Users? Experimental Evidence from the Field," Working Papers 2005-4, University of Massachusetts Amherst, Department of Resource Economics.
  2. Matthias Sutter & Stefan Haigner & Martin G. Kocher, 2010. "Choosing the Carrot or the Stick? Endogenous Institutional Choice in Social Dilemma Situations," Review of Economic Studies, Oxford University Press, vol. 77(4), pages 1540-1566.
  3. Vyrastekova,J. & Soest,D. van, 2002. "Centralized common pool management and local community participation," Working Papers 335, Bielefeld University, Center for Mathematical Economics.
  4. Glenn W. Harrison & John A. List, 2004. "Field Experiments," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1009-1055, December.
  5. Cornes, Richard & Sandler, Todd, 1983. "On Commons and Tragedies," American Economic Review, American Economic Association, vol. 73(4), pages 787-92, September.
  6. Bischoff, Ivo, 2007. "Institutional choice versus communication in social dilemmas--An experimental approach," Journal of Economic Behavior & Organization, Elsevier, vol. 62(1), pages 20-36, January.
  7. Alm, James & McClelland, Gary H & Schulze, William D, 1999. "Changing the Social Norm of Tax Compliance by Voting," Kyklos, Wiley Blackwell, vol. 52(2), pages 141-71.
  8. Jean-Robert Tyran & Lars P. Feld, 2006. "Achieving Compliance when Legal Sanctions are Non-deterrent," Scandinavian Journal of Economics, Wiley Blackwell, vol. 108(1), pages 135-156, 03.
  9. Magdalena Margreiter & Matthias Sutter & Dennis Dittrich, 2005. "Individual and Collective Choice and Voting in Common Pool Resource Problem with Heterogeneous Actors," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 32(2), pages 241-271, October.
  10. Ostrom, Elinor, 2006. "The value-added of laboratory experiments for the study of institutions and common-pool resources," Journal of Economic Behavior & Organization, Elsevier, vol. 61(2), pages 149-163, October.
  11. Ostrom, Elinor, 2009. "Beyond Markets and States: Polycentric Governance of Complex Economic Systems," Nobel Prize in Economics documents 2009-4, Nobel Prize Committee.
  12. Feld, Lars P & Tyran, Jean-Robert, 2002. "Tax Evasion and Voting: An Experimental Analysis," Kyklos, Wiley Blackwell, vol. 55(2), pages 197-222.
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