The Tragedy of the Commons in a Violent World
AbstractEarlier research has shown that the tragedy of the commons may be resolved by Folk theorems for dynamic games. In this article we graft on a standard natural-resource exploitation game the possibility to appropriate the resource through violent means. Because conflict emerges endogenously as resources get depleted, the threat supporting the cooperative outcome is no longer subgame perfect, and thus credible. The unique equilibrium is such that players exploit non-cooperatively the resource when it is abundant and they revert to conflict when it becomes scarce. The players' utility is shown to be lower even if conflict wastes no resources.
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Bibliographic InfoPaper provided by University of Namur, Department of Economics in its series Working Papers with number 1213.
Length: 25 pages
Date of creation: Dec 2012
Date of revision:
Tragedy of the Commons; Conflict; Dynamic Game;
Find related papers by JEL classification:
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
- Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-12-22 (All new papers)
- NEP-ENV-2012-12-22 (Environmental Economics)
- NEP-GTH-2012-12-22 (Game Theory)
- NEP-HPE-2012-12-22 (History & Philosophy of Economics)
- NEP-MIC-2012-12-22 (Microeconomics)
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