Strategic Exploitation of a Common-Property Resource under Uncertainty
AbstractWe study the impact of uncertainty on the strategies and dynamics of symmetric noncooperative games among players who exploit a non-excludable resource that reproducesunder uncertainty. We focus on a particular class of games that deliver a unique Nash equilibrium in linear-symmetric strategies of resource exploitation. We show that, for this class of games, the tragedy of the commons is always present. For various changes in the riskiness of the random primitives of the model we provide general characterizations of features of the model that explain links between the degree of riskiness and strategic exploitation decisions. Finally, we provide a specific example that demonstrates the usefulness of our general results and, within the specific example, we study cases where increases in risk amplify or mitigate the tragedy of the commons.
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Bibliographic InfoPaper provided by University of Vienna, Department of Economics in its series Vienna Economics Papers with number 0703.
Date of creation: Jun 2007
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Other versions of this item:
- Antoniadou, Elena & Koulovatianos, Christos & Mirman, Leonard J., 2013. "Strategic exploitation of a common-property resource under uncertainty," Journal of Environmental Economics and Management, Elsevier, vol. 65(1), pages 28-39.
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- D90 - Microeconomics - - Intertemporal Choice - - - General
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-06-23 (All new papers)
- NEP-CSE-2007-06-23 (Economics of Strategic Management)
- NEP-ENV-2007-06-23 (Environmental Economics)
- NEP-GTH-2007-06-23 (Game Theory)
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