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Communtication in a Common Pool Resource Environment with Probabilistic Destruction

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  • Andrew Muller
  • Michelle Vickers
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    Abstract

    We replicate and extend an experiment due to Walker and Gardner by investigating the effect of communication in a common pool resource subject to probabilistic destruction when group appropriation exceeds a safe zone. We replicate the Gardner and Walker result that destruction of the resource is rapid and efficiencies are low when communication is not allowed. Face-to-face communication significantly increases mean efficiency. Three groups of five sustain a “good” Nash equilibrium in the safe zone. The remaining two groups quickly destroy the resource. Achieving a “good” equilibrium is highly dependent on the emergence of a leader in the group communication.

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    Bibliographic Info

    Paper provided by McMaster University in its series McMaster Experimental Economics Laboratory Publications with number 1996-01.

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    Length: 28 pages
    Date of creation: Jan 1996
    Date of revision:
    Handle: RePEc:mcm:mceelp:1996-01

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