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The survival of the conformist: social pressure and renewable resource management

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  • Alessandro Tavoni
  • Maja Schlüter
  • Simon Levin
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    Abstract

    This paper examines the role of other-regarding behavior as a mechanism for the establishment and maintenance of cooperation in resource use under variable social and environmental conditions. By coupling resource stock dynamics with social dynamics concerning compliance to a social norm prescribing non-excessive resource extraction in a common pool resource, we show that when reputational considerations matter and a sufficient level of social stigma affects the violators of a norm, sustainable outcomes are achieved. We find large parameter regions where norm-observing and norm-violating types coexist, and analyze to what extent such coexistence depends on the environment.

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    File URL: http://www.lse.ac.uk/GranthamInstitute/publications/WorkingPapers/Papers/WPapers30-39/WP35_renewable-resource-management.pdf
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    Bibliographic Info

    Paper provided by Grantham Research Institute on Climate Change and the Environment in its series Grantham Research Institute on Climate Change and the Environment Working Papers with number 35.

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    Date of creation: Jan 2011
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    Handle: RePEc:lsg:lsgwps:wp35

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    1. Sethi, Rajiv & Somanathan, E, 1996. "The Evolution of Social Norms in Common Property Resource Use," American Economic Review, American Economic Association, vol. 86(4), pages 766-88, September.
    2. Noailly, J. & Withagen, C.A.A.M. & Bergh, J.C.J.M. van den, 2007. "Spatial evolution of social norms in a common-pool resource game," Open Access publications from Tilburg University urn:nbn:nl:ui:12-192946, Tilburg University.
    3. Tarui, Nori & Mason, Charles F. & Polasky, Stephen & Ellis, Greg, 2008. "Cooperation in the commons with unobservable actions," Journal of Environmental Economics and Management, Elsevier, vol. 55(1), pages 37-51, January.
    4. van den Bergh, Jeroen C.J.M. & Gowdy, John M., 2009. "A group selection perspective on economic behavior, institutions and organizations," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 1-20, October.
    5. Gowdy, John M., 2008. "Behavioral economics and climate change policy," Journal of Economic Behavior & Organization, Elsevier, vol. 68(3-4), pages 632-644, December.
    6. Anastasios Xepapadeas, 2005. "Regulation and Evolution of Compliance in Common Pool Resources," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(3), pages 583-599, 09.
    7. Maier-Rigaud, Frank P. & Martinsson, Peter & Staffiero, Gianandrea, 2010. "Ostracism and the provision of a public good: experimental evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 73(3), pages 387-395, March.
    8. Lindbeck, Assar, 1997. "Incentives and Social Norms in Household Behavior," American Economic Review, American Economic Association, vol. 87(2), pages 370-77, May.
    9. Oses-Eraso, Nuria & Viladrich-Grau, Montserrat, 2007. "On the sustainability of common property resources," Journal of Environmental Economics and Management, Elsevier, vol. 53(3), pages 393-410, May.
    10. Baland, Jean-Marie & Platteau, Jean-Philippe, 2000. "Halting Degradation of Natural Resources: Is There a Role for Rural Communities?," OUP Catalogue, Oxford University Press, number 9780198290612.
    11. Sethi, Rajiv & Somanathan, E, 2006. "A Simple Model of Collective Action," Economic Development and Cultural Change, University of Chicago Press, vol. 54(3), pages 725-47, April.
    12. George A. Akerlof, 2007. "The Missing Motivation in Macroeconomics," American Economic Review, American Economic Association, vol. 97(1), pages 5-36, March.
    13. Iwasa, Yoh & Uchida, Tomoe & Yokomizo, Hiroyuki, 2007. "Nonlinear behavior of the socio-economic dynamics for lake eutrophication control," Ecological Economics, Elsevier, vol. 63(1), pages 219-229, June.
    14. Sergio Currarini & Matthew O. Jackson & Paolo Pin, 2009. "An Economic Model of Friendship: Homophily, Minorities, and Segregation," Econometrica, Econometric Society, vol. 77(4), pages 1003-1045, 07.
    15. McCarthy, Nancy & Sadoulet, Elisabeth & de Janvry, Alain, 2001. "Common Pool Resource Appropriation under Costly Cooperation," Journal of Environmental Economics and Management, Elsevier, vol. 42(3), pages 297-309, November.
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