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Collective action in the commons: A theoretical framework for empirical research

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  • Rajiv Sethi

    (Columbia University)

  • E. Somanathan

    (Indian Statistical Institute, New Delhi)

Abstract

A model of collective action in the commons that is intended to provide a framework for empirical research into the question of when cooperation is likely to be successful is presented. It is based on the presence of costly punishment opportunities, some players who have a taste for punishing those who violate agreements to cooperate (an assumption strongly supported by recent experimental research), and bounded rationality. It predicts that cooperation is more likely when communication is cheap, the technology of public good provision is sufficiently productive, effective punishment opportunities are available at sufficiently low cost, and when group size is large (holding constant the other parameters mentioned). Heterogeneity in the ability to inflict punishment or be hurt by it may result in collective action becoming infeasible, especially when there are increasing returns to the public good, but there is a range of parameters in which changes in heterogeneity will have no effect and circumstances in which heterogeneity will actually favor cooperation.

Suggested Citation

  • Rajiv Sethi & E. Somanathan, 2004. "Collective action in the commons: A theoretical framework for empirical research," Discussion Papers 04-21, Indian Statistical Institute, Delhi.
    • Handle: RePEc:alo:isipdp:04-21
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    File URL: http://www.isid.ac.in/~pu/dispapers/dp04-21.pdf
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    References listed on IDEAS

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    1. David Masclet & Charles Noussair & Steven Tucker & Marie-Claire Villeval, 2003. "Monetary and Nonmonetary Punishment in the Voluntary Contributions Mechanism," American Economic Review, American Economic Association, vol. 93(1), pages 366-380, March.
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    3. Bochet, Olivier & Page, Talbot & Putterman, Louis, 2006. "Communication and punishment in voluntary contribution experiments," Journal of Economic Behavior & Organization, Elsevier, vol. 60(1), pages 11-26, May.
    4. Martin J. Osborne & Ariel Rubinstein, 1994. "A Course in Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262650401, December.
    5. 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 124-124.
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    Cited by:

    1. Pranab Mukhopadhyay, "undated". "Heterogeneity, Commons and Privitization: Agrarian Institutional Change in Goa," Working papers 22, The South Asian Network for Development and Environmental Economics.

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