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Can common ownership prevent the tragedy of the commons? An experimental investigation

Author

Listed:
  • Klarizze Puzon

    (SLU - Swedish University of Agricultural Sciences = Sveriges lantbruksuniversitet)

  • Marc Willinger

    (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)

Abstract

We study experimentally a two-stage common pool resource game. In the first stage, selected members of the group determine the level of protection for the resource. The protected fraction of the resource is equally shared among group members. In the second stage, the unprotected fraction of the resource is competed for. We consider three institutions varying in the extent by which subjects participate in the first stage: vote(all group members participate), dictator (only one member decides), and exogenous (no-one participates). We also vary the initial level of the resource: scarce or abundant. We establish the following results. First, we find that the voting institution provides more frequent protection and leads to higher protection levels than the dictatorial institution. In addition, higher protection tends to temper rent seeking for the unprotectedfraction of the resource for both institutions. Second, rent-seeking intensifies after a resource boom, but this effect is non-significant under the vote institution. Finally, rent-seeking is larger when the level of the resource is high, but this tendency is sharply reduced under the vote institution

Suggested Citation

  • Klarizze Puzon & Marc Willinger, 2020. "Can common ownership prevent the tragedy of the commons? An experimental investigation," Post-Print hal-02554976, HAL.
    • Handle: RePEc:hal:journl:hal-02554976
    DOI: 10.2139/ssrn.3410383
    as

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    Keywords

    voting; commons; natural resources; property rights; experiments;
    All these keywords.

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact

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