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Multiple Interactions and the Management of Local Commons

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  • Damien S Eldridge

    ()
    (School of Economics, La Trobe University)

Abstract

We provide a model in which small and relatively isolated communities can successfully manage local commons informally in circumstances where larger or less isolated communities could not do so. The reason for this is the non-anonymous nature of many interactions between the members of a small and isolated community. Such communities may be able to use these multiple interactions to enforce informal restrictions on the usage of local commons. To the extent that the process of economic development reduces the number of non-anonymous interactions among community members, it will reduce the ability of the community to successfully manage the local commons informally. The resulting need for either explicit regulation or the introduction of private property rights represents a hidden cost of development.

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File URL: http://www.latrobe.edu.au/__data/assets/pdf_file/0019/130906/2007.07.pdf
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Bibliographic Info

Paper provided by School of Economics, La Trobe University in its series Working Papers with number 2007.07.

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Length: 17 pages
Date of creation: Nov 2007
Date of revision:
Handle: RePEc:trb:wpaper:2007.07

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  1. J. Bradford De Long & Andrei Shleifer, 1993. "Princes and Merchants: European City Growth before the Industrial Revolution," NBER Working Papers 4274, National Bureau of Economic Research, Inc.
  2. Elinor Ostrom & Roy Gardner, 1993. "Coping with Asymmetries in the Commons: Self-Governing Irrigation Systems Can Work," Journal of Economic Perspectives, American Economic Association, vol. 7(4), pages 93-112, Fall.
  3. Simon Johnson & John McMillan & Christopher Woodruff, 2002. "Property Rights and Finance," American Economic Review, American Economic Association, vol. 92(5), pages 1335-1356, December.
  4. Grafton, R Quentin & Squires, Dale & Fox, Kevin J, 2000. "Private Property and Economic Efficiency: A Study of a Common-Pool Resource," Journal of Law and Economics, University of Chicago Press, vol. 43(2), pages 679-713, October.
  5. Pranab Bardhan, 1993. "Symposium on Management of Local Commons," Journal of Economic Perspectives, American Economic Association, vol. 7(4), pages 87-92, Fall.
  6. repec:ltr:wpaper:2007.07 is not listed on IDEAS
  7. Scully, Gerald W, 1988. "The Institutional Framework and Economic Development," Journal of Political Economy, University of Chicago Press, vol. 96(3), pages 652-62, June.
  8. Damien S. Eldridge, 2009. "Multiple Interactions and the Management of Local Commons," The Economic Record, The Economic Society of Australia, vol. 85(270), pages 344-349, 09.
  9. B. Douglas Bernheim & Michael D. Whinston, 1990. "Multimarket Contact and Collusive Behavior," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 1-26, Spring.
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Cited by:
  1. Damien S Eldridge, 2008. "Sharing the greenhouse: Inducing cooperation in a global common," Working Papers 2008.07, School of Economics, La Trobe University.
  2. repec:ltr:wpaper:2007.07 is not listed on IDEAS
  3. Damien S Eldridge, 2007. "Multiple Interactions and the Management of Local Commons," Working Papers 2007.07, School of Economics, La Trobe University.

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