Output Sharing Among Groups Exploiting Common Pool Resources
AbstractThis paper provides an experimental testing ground for an equal output-sharing partnership approach as a common pool resource (CPR) management instrument. It examines the behaviour of resource users in output-sharing partnerships of different sizes, and evaluates the impact of partnership size and the way partners are assigned on effort (extraction) levels. Experimental results are very close to Nash predictions, and confirm that group size significantly affects resource user’s effort supply. The first best solution is achieved, when resource users are privately extracting from the CPR and equally sharing their output with the socially optimal number of partners. The way partners are allocated (randomly or with the same partners over 15 periods) does not significantly affect aggregate effort contributions. Income distribution, however, is more equitable with random allocation of partners than with fixed partners.
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Bibliographic InfoPaper provided by McMaster University in its series Department of Economics Working Papers with number 2002-06.
Length: 39 pages
Date of creation: Jun 2002
Date of revision:
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- Stephan Schott & Neil Buckley & Stuart Mestelman & R. Andrew Muller, 2004. "Output Sharing Among Groups Exploiting Common Pool Resources," McMaster Experimental Economics Laboratory Publications 2004-05, McMaster University.
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