Information Structure and the Tragedy of the Commons in Resource Extraction
AbstractThis paper considers the well-known Levhari-Mirman model of resource extraction, and investigates the effects of the information structure of the dynamic game - open-loop, Markovian or history-dependent - on the equilibrium consumption path and the overall utility of the agents. The open-loop regime yields a Pareto-optimal outcome. The Markovian regime leads to the most pronounced version of the tragedy of the commons. History-dependent behavior yields an outcome set that is intermediate between the other two cases.
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Bibliographic InfoPaper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number 00-09.
Length: 25 pages
Date of creation: Jun 2000
Date of revision:
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More information through EDIRC
Dynamic resource games; Open-loop; Closed-loop and trigger strategies; Pareto optimality; Regulation;
Other versions of this item:
- Rabah Amir & Niels Nannerup, 2006. "Information Structure and the Tragedy of the Commons in Resource Extraction," Journal of Bioeconomics, Springer, vol. 8(2), pages 147-165, August.
- AMIR, Rabah & NANNERUP, Niels, 2004. "Information structure and the tragedy of the commons in resource extraction," CORE Discussion Papers 2004040, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
This paper has been announced in the following NEP Reports:
- NEP-ALL-2001-10-29 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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