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Coping with the Tragedy of the Commons: Game Structure and Design of Rules

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  • Nicolas Faysse

Abstract

The paper provides an assessment of some recent results of the large amount of New Institutional Economics analyses investigating a common-pool resource setting, with a specific focus on game theory models. Most of the studies have used a noncooperative approach in order to explain how under-provision for the resource or its over-use - the so-called Tragedy of the Commons - can be avoided, within given management rules. They show how the characteristics of the game (payoff matrix, repetition) or of the users (group size, wealth, heterogeneity and moral norms) may give incentives for the latter to play in a way that benefits all users. By contrast, much fewer articles have used a formalized approach to assess the possibility for players to design new rules to overcome the initial Tragedy of the Commons. The article ends with some proposals of directions for future research. Copyright Blackwell Publishers Ltd, 2005.

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  • Nicolas Faysse, 2005. "Coping with the Tragedy of the Commons: Game Structure and Design of Rules," Journal of Economic Surveys, Wiley Blackwell, vol. 19(2), pages 239-261, April.
  • Handle: RePEc:bla:jecsur:v:19:y:2005:i:2:p:239-261
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    1. Tanja Baerlein & Ulan Kasymov & Dimitrios Zikos, 2015. "Self-Governance and Sustainable Common Pool Resource Management in Kyrgyzstan," Sustainability, MDPI, Open Access Journal, vol. 7(1), pages 1-26, January.
    2. Espínola-Arredondo, Ana & Muñoz-García, Félix, 2013. "Asymmetric information may protect the commons: The welfare benefits of uninformed regulators," Economics Letters, Elsevier, vol. 121(3), pages 463-467.
    3. Ruttan, Lore M., 2008. "Economic Heterogeneity and the Commons: Effects on Collective Action and Collective Goods Provisioning," World Development, Elsevier, vol. 36(5), pages 969-985, May.
    4. Gary D. Libecap, 2014. "Addressing Global Environmental Externalities: Transaction Costs Considerations," Journal of Economic Literature, American Economic Association, vol. 52(2), pages 424-479, June.
    5. Ringa Raudla, 2010. "Governing budgetary commons: what can we learn from Elinor Ostrom?," European Journal of Law and Economics, Springer, vol. 30(3), pages 201-221, December.
    6. Gary D. Libecap, 2013. "Addressing Global Environmental Externalities: Transaction Costs Considerations," NBER Working Papers 19501, National Bureau of Economic Research, Inc.
    7. Elinor Ostrom, 2014. "Do institutions for collective action evolve?," Journal of Bioeconomics, Springer, vol. 16(1), pages 3-30, April.
    8. Elinor Ostrom, 2010. "Beyond Markets and States: Polycentric Governance of Complex Economic Systems," American Economic Review, American Economic Association, vol. 100(3), pages 641-672, June.
    9. Ana Paula Martins, 2012. "Calls and Couples: Communication, Connections, Joint-Consumption and Transfer Prices," Annals of Economics and Finance, Society for AEF, vol. 13(2), pages 237-281, November.
    10. Bodo Sturm & Joachim Weimann, 2006. "Experiments in Environmental Economics and Some Close Relatives," Journal of Economic Surveys, Wiley Blackwell, vol. 20(3), pages 419-457, July.
    11. Yasuyuki Sawada & Ryuji Kasahara & Keitaro Aoyagi & Masahiro Shoji & Mika Ueyama, 2013. "Modes of Collective Action in Village Economies: Evidence from Natural and Artefactual Field Experiments in a Developing Country," Asian Development Review, MIT Press, vol. 30(1), pages 31-51, March.
    12. Espínola-Arredondo, Ana & Muñoz-García, Félix, 2011. "Can incomplete information lead to under-exploitation in the commons?," Journal of Environmental Economics and Management, Elsevier, vol. 62(3), pages 402-413.
    13. Matthew Freeman & Christopher Anderson, 2013. "Modeling Effort and Lobbying in a Heterogeneous Common Pool Resource Setting," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 56(3), pages 399-414, November.
    14. Josemiguel Lana Berasain & Miguel Laborda Pemán, 2013. "El anidamiento institucional y su dinámica histórica en comunidades rurales complejas. Dos estudios de caso (Navarra, siglos XIV-XX)," Documentos de Trabajo de la Sociedad Española de Historia Agraria 1307, Sociedad Española de Historia Agraria.

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