Governing a Common-Pool Resource in a Directed Network
AbstractA local public-good game played on directed networks is analyzed. The model is motivated by one-way flows of hydrological influence between cities of a river basin that may shape the level of their contribution to the conservation of wetlands. It is shown that in many (but not all) directed networks, there exists an equilibrium, sometimes socially desirable, in which some stakeholders exert maximal effort and the others free ride. It is also shown that more directed links are not always better. Finally, the model is applied to the conservation of wetlands in the Gironde estuary (France).
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Bibliographic InfoPaper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2010.147.
Date of creation: Nov 2010
Date of revision:
Common-pool Resource; Digraph; Cycle; Independent Set; Empirical Example;
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-02-12 (All new papers)
- NEP-GTH-2011-02-12 (Game Theory)
- NEP-NET-2011-02-12 (Network Economics)
- NEP-SOC-2011-02-12 (Social Norms & Social Capital)
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